If you are a bull you might have your rally cap on, but it’s not going to help.
We have a lot on our plate today and we have been positioning for a massive move in the market and we may be getting it. We have slowly rolled out of call options and we have been getting into quite a few put option plays.
As option traders, we are neither, bullish or bearish – we want market direction and we are now getting it. And we LOVE it.
As we head to press, the Dow is currently down 128 points to 10,740 while the S&P 500 is off by 16 points to 1,149. We have been warning of these crucial levels all week – Dow 10,800 and S&P 500 1,150 – and we have mentioned a break below could get the bears out in force.
The Nasdaq is getting pounded and is showing a 36 point loss, or 1.5%, to 2,365.
We mentioned Friday’s job report and the key numbers Wall Street will be watching for are is the number of new jobs added to U.S. payrolls and the unemployment rate which was last seen at 9.7%.
If the bulls have any shot of breaking the TREND lower then they will have to score big with this one. Sometimes the market can break below key support levels and bounce back but it’s the bottom of the ninth and there are two outs.
We have a lot to cover in our Members Area today, including some Special Updates, for those of you who have recently joined us. We will be back in the morning with a full update.