NFP Report

The triangle pattern finally completed. We first saw a breakout which failed. Normally, when a breakout fails, you then would break out on the opposite side of the triangle which is exactly what happened today. We closed right near our 210 level, but we did not close below it. This was not enough for me to go short. Secondly, with the NFP report tomorrow, there is no reason to gamble. These days, with all the Fed intervention, bad is good and good is bad. As traders we should only take trades where we can put the odds in our favor. If we have any extra uncertainty, we skip it, and catch the next one.

This weekend, I will look into the the turmoil in bonds and we also have a great post on investing in real estate.