The futures were jacking higher Monday evening on news that the U.S.-North Korea summit was back on, and were near their highs when I posted my video report at that time. As I noted in that video report, I felt that the futures jack was something that could likely be faded (shorted into) at the open on Tuesday. Unfortunately, by Tuesday’s opening bell the futures had reversed sharply and the market opened down.
But, short-sellers were given a second chance as the indexes rallied back off their morning lows, closing in on the unchanged line before reversing hard to the downside once again. The Dow Jones Industrials Index led on the downside among the major market indexes with a -1.16% decline, but the broader NYSE Composite Index took the biggest hit, giving up -1.52% on the day.
That was all good for the tactical shorting opportunity I was looking for, even though it all didn’t transpire exactly the way I thought it would. This market remains something of a mosh pit, and sharp moves in one direction rarely see any continuity. News is often the culprit when it comes to market swings, and fears over Italy’s exit from the European Union helped to trigger yesterday’s sell-off.
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