On Monday, Dec. 5, we short the Dec. E-Mini Nasdaq 100 futures (NQZ11) at 2331. This trade was set up by two factors: an expected correction after the market’s nearly 10-percent (low-to-high) rally between Nov. 25 and Dec. 2, and the tendency for the market to drift lower on days no major economic news releases are scheduled, as detailed in “Trading the news vacuum” (Active Trader, September 2006).
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