Thursday, November 26, 2009

Circuit Breaker

The big news, of course, out of Dubai is rattling market sentiment during the US Thanksgiving holiday. With the ES futures down significantly it is prudent to post the circuit breaker levels in case things get really ugly.

You can find these levels HERE and HERE.



There is a relative lack of press coverage this story is getting which (to me) indicates a continued sense of complacency, so I would be careful trying to be too much of a contrarian and buying the open on Friday.

IF YOU ARE LONG


The easy thing to do is to brag that I'm short (albeit with a very small position) but there are enough blogs out there who are already doing that. Plus I have no interest in boasting.

If for some reason you are long my best advice is to stay cool and collected before making any decisions. If you come to your desk all frazzled you're likely to make mistakes and execute bad judgment.

Other than setting my stop down to break even, I plan on staying out of the market with respect to my intraday trading. We'll likely get some huge volume and volatility on the open. Let the big boys fight it out on their own terms. There's little room for retail traders to get involved.