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Halftime Report, Thursday October 29: Sympathy Bounce or Swing Low?

|Includes: DIA, iShares Russell 2000 ETF (IWM), QQQ, SPXU, SPY, TNA, TRIN, XLF

The markets are higher today which comes as no surprise after the good economic reports this morning and the short term over-sold nature. This morning, Jobless Claims and GDP reports beat expectations and certainly acted as a catalyst sending us higher today. The VIX is bleeding out nicely as fear is leaving the market today. The TICK and TRIN are obviously bullish.

So is this a sympathy bounce or a swing low? There is no confirmation either way at this point in time, but confirmation may come tomorrow or early next week.


Last night I dumped SPXU for a healthy profit on the day (in at $44.02 out at $46.22 for a 5%+ gain). I thought it would be prudent not to hold that position over such big economic news. I was proven right today and my "insurance" paid well. This morning I traded TNA long from $38.27. I was stopped out at $38.75 on a healthy bull pull back which leads me to believe that my stop may have been a bit too tight. The reasons behind my stop decision are under consideration.

Thanks for being a part of! Always trade for a stop loss (even if you get stopped out) and manage your risk appropriately. Check back this evening for your post market analysis.

Happy Trading,