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S&P's Down Hard on First of Month
We're still only half way through the trading session but the S&P 500 stock index futures are down 20.00 full points while the Dow 30 futures are down 200 points after one of the major ratings agencies downgraded the finanacials -- Merril Lynch, Leaman, Morgan Stanley etc. What is significant about this to me is it is the first trading day of the month, a day which in a healthy market has a pretty good track record for being higher. It is also telling us something when it does not rally, which is likely that someone BIG is exiting the market, because despite the end-of-month/begining of month 401K, IRA, ESOP buy only money flows etc, the market is taking it on the chin. The tell to exit our twice a month trade came last Friday when the market sold off into the close, after failing to hold a rally for the second day in a row. I thought that coming into today that I'd be somewhat regretful of exiting the long position ahead of the weekend. Better lucky than not I suppose. Jay Norris [url]http://www.brewerfx.com/jaytriglobal[/url] DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. Risks include the potential that changing political/economic conditions may substantially affect the price/liquidity of a currency. Investors may lose all or more than their original investments. The impact of such events is already factored into market prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and may work against you as well as for you. In no event should the content of this correspondence be construed as an express or implied promise or guarantee from Brewer Investment Group, LLC or its affiliates that you will profit or that losses can or will be limited in any way. Loss-limiting strategies such as stop loss orders may not be effective because market or technological conditions may make it impossible to execute such orders. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only, was obtained from sources believed to be reliable, but is in no way guaranteed.
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