Thursday, December 14, 2006

Surprisingly Strong Retail Sales

U.S. retail sales were up 1.1% in November. The consensus forecast was 0.2%. As a result, stocks and the U.S. dollar are up and bonds down. NQ futures are up 7.75 points at the moment (my positions bought yesterday are now in the money). I was actually worried the retail sales number might be low and sold out of a QQQQ position I bought yesterday afternoon just before the number came out and then bought back in just after for a loss of 3 cents per share (I sold the shares for an 11 cent profit - 3 cents is the difference between my buy and sell prices). Yes, I'm still very jittery.


Oh well, the market closed the opening gap... and then some. Sometimes the gap closing trade works and sometimes not. I don't have a good theory about this yet. A lot of traders are watching this triangle:

I think it should break upwards, but at this point we are close to testing the downside.

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