(Wed Dec 3th, 2008)

The market is moving great for a trader. The dow has hit (or pierced) 8200 six times and bounced at least 5 percent since October. The S&P 500 has hit (or pierced) 850 and bounced four times since October as well.

Below are some trades that would have been possible if buy point was 8200 for the Dow and 850 for the S&P. Move percents are based on those buy points.

• S&P, Oct 10th - 839, Oct 14th - 1044, +22% move
• S&P, Oct 27th - 847, Nov 4th - 1007, +18% move
• S&P, Nov 13th - 818, Nov 14th - 916, +7% move
• S&P, Nov 17th - 848, Nov 28th - 896, +5% move
• Biggest loss if exited at low, Nov 21st at 741, 12.8% loss


• DJIA, Oct 10th - 7773, Oct 14th - 9924, +21% move
• DJIA, Oct 16th - 8176, Oct 17th - 9304, +13% move
• DJIA, Oct 24th - 8088, Nov 4th - 9711, +18% move
• DJIA, Nov 13th - 7947, Nov 14th - 8980, +9% move
• DJIA, Nov 17th - 8197, Nov 28th - 8840, +7% move
• DJIA, Dec 1st - 8123, Dec 3rd - 8654, +5% move

The current trade entry should have been on Dec 1st and is currently +5%. Would I enter here if I hadn't gotten in on Monday, No. I would wait to see what tomorrow brings. If it heads higher than today's 8654.19 I'd take a small position, expecting a dip later in the day, and see if it can power up. If it pulls back into the 8200's I'd take a larger position and wouldn't be worried unless it breaks down through the 8072's.

Not sure if this move can work or not. If you notice the above market moves they have become progressively smaller. I'd exit around 8900 and retake a smaller position if it is able to push through 9000.