March 27, 2008
**Read my article "Tips and Tricks" in this month's bonus issue of Stocks and Commodities!!!
Wall Street welcomed a directionless day in the equity markets. Following seemingly endless volatility, traders have finally been given the opportunity to take a breather. Ironically, I had a few clients complaining about how quiet it was.
The day's trading range was relatively wide (186 points), but the Dow gravitated toward unchanged for much of the day. Even on a sideways day, there are opportunities for day traders, although it isn't as easy as it looks.
According to the Commerce Department, the GDP in the fourth quarter increased at a less than impressive .6%. In comparison to the 3rd quarter growth rate of just under 5% it is apparent that things turned south quickly. As for the first quarter of 2008, many are expecting worse and some are even calling for a contraction. Unfortunately, we really won't have an estimate until late April.
It may be tempting to sell into this rally, but if that is your game plan you should be very careful and always use stops. I have lowered my projection for the June Dow to 12,649 but if I am right we have a nearly 300 point rally coming our way in the next week or so. If I am wrong, the market may find heavy support at 12,227 and again in 11,807.
Please note: A mini-sized Dow chart is used because it is better for charting purposes, but trade recommendations are based the full sized Dow unless otherwise noted.
Dow Recommendations...
**There is unlimited risk in naked option selling and futures trading
Position Trade - Flat
Please note: A mini-Nasdaq chart is used because it is better for charting purposes, trade recommendations will denote whether a mini or full sized contract should be used.
Nasdaq Recommendation
**There is unlimited risk in naked option selling and futures trading
Position Trade - Flat
Carley Garner
Alaron Research Team
800.935.6492
cgarner@alaron.com
http://www.commoditytradingschool.com/
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers, directors, employees and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
