Initial Claims, Continuing Gains

The data is out and ironically, it appears we will get that gap that I posted the last several days as an example of "What we might expect". That gap was about 1.4% on the SPY and right now we are looking at a figure around 1.3%.

Typically gaps get faded so as a quick trade you might pick a leveraged index ETF and short a little within about the first 10 minutes of trade, typically it'll fall as the market makers fade the opening gap and you are out of the trade usually in less then an hour. You take a risk that the gap up is not faded, but usually they are.

So like the example I put out that gapped way up and closed quite a bit lower, we have to keep our eye on the market as we knew about the 5 min positive, but we still have a bunch of longer negatives. Don't forget Tuesday's surprise news... Inventories for Crude later this a.m.