S&P 500 - October 13, 2010 - BMO

Future market has been at it all night. NDX futures are a few points away from the April high


It, of course, is early and a lot can change but, so far, it’s been go-go-go with the futures

When market perception is dollar is trash and has to be exchanged for anything it can buy, then, why not buy NDX all night?

Remember this Bernanke quote from my August 27 post

“First, the FOMC will strongly resist deviations from price stability in the downward direction.”

Well, 1.5 months and S&P is 120 points higher.

Remember the post of September 21, when I said:

"seems like the greatest fear in the market is to end up being the last man holding US Dollar"

Now, everybody, I mean EVERY BODY talks about it. When everybody dances the same dance on the same floor, then I'd rather be as close to the door as possible because, as I have said, the doors of crowded places are narrow and few.

That doesn't necessarily mean that I am gonna dump and leave, just that I shall be actively assessing my levels and risk mitigation options.

As for US Dollar, it has been taking a beating against Canadian Dollar over night


Gold has been rising as well


If S&P cash were to open now, we would have yet another gap up (the 6th unfilled gap) since The August low .


It’s all about the much maligned US Dollar – a crowded trade that gets more and more crowded. I am sure most players are certain they can time it to perfection and exit before others.

All I can do is assess and re-adjust my levels – don’t you like it when a trend becomes your friend and help you build profit by allowing you to raise your exit/concern levels

My top level was 1159 cash as of yesterday’s close. Depending on how cash market opens, the level may change.

Trade Safely!