Let's play this rally for what it's worth.
Predictions (no surprises here):
Republicans take house;
Democrats take senate;
Greenspan drops rates 0.25bps, except comes out with a "we're looking at the end of the economic downturn, but this rate cut should do it" sort of message.
Major indicies up 10-15% from here on in, and just when people start feeling good November, the floor collapses.
So, right now is the time to buy. Just be absolutely sure that this is a very, very hollow rally. Just enough to get the longs to believe that this is "for real", and just enough to get the shorts to believe that this is "for real". When things are "for real", well, that's when things become "virtual" again. :) To trade these markets, you have to think like a psychopath. So let's make a psychopathic trade. And check ourselves in the mental ward.
Buy 50 MDY @ 81.00, if order is not filled by 12:00 eastern time, then cancel it. Oh, and I see that the last closing price of MDY is $79.29, but I doubt it'll see that price all day.
If the preceeding order is executed, place the following sell orders for 50 shares of MDY:
(stop order) $3 below execution price; or
(limit sell order) $88.30 per share.
I'm looking to risk $150 in the hopes of gaining $365 or more. I'm just looking for base hits here at this stage, not home runs. Home runs (OK, doubles or triples, not home runs) will come later this year. |
