There is a 10 percent probability that Tuesday’s highs in the market will be the highs for the year. It all depends on whether the Obama Administration keeps trying to appease the conservatives and ends up watering down the target measures that have to be implemented to move forward. I am working on the premise that that will not be the case and they will start playing hard ball to get the infrastructure and green energy programs moving fast.
This runup to the employment numbers has provided a little retrenchment within the trading ranges. In the ETF portfolio today we want to be buying back the XLE at 48.10, DIG at 29.10 and get out of the SDS hedge at 71.90. There probably won’t be any updates today as we will not be available to watch the markets.
The EMA Fund Index closed at 1050 yesterday.
7:45 AM CST