NASDAQ futures are up 54 point, or 3% this morning and it looks like some bears are looking to lock in gains from the past couple of weeks. S&P futures are higher by 12 point and Dow futures are up 65. I'd be a little cautious about jumping in long here at the open today as bond YIELDS are lower in the 5-year (FVX.X) and 10-year (TNX.X) notes. The 30-year (TYX.X) is also lower but to a lesser extent. This would probably be the first bond to show a YIELD turning green today and indicate some selling in bonds. Fair value for the S&P 500 today is $12.52 with buy programs set at $15.06 and selling set at $9.48. For more information regarding fair value and buy/sell programs, please visit www.programtrading.com.
Nonetheless, honor your stops
Yesterday, we added two shorts. One was in the QQQs and we had lowered our stop in the trade to $45.12. We knew going in that we might be near a short-term bottom, but wanted to play the markets downward trend. We also added a half position (half of what a trader would normally put/short) short in shares of Goldman Sachs (NYSE:GS) and had lowered our stop in that trade to $85.25. Both of these stops were lowered from original stopping points as we wanted to keep any losses small and that's what we'll look to do if needed today.
The Nikkei 225 Index in Japan rallied to close up 309 points after being down over 400 points earlier in the session. Stocks rebounded on the news that three major banks were willing to take losses and write off bad loans. This is viewed as one of the first steps needed to clean Japan's trouble banking system. Elsewhere around the Asia/Pacific region, the Hang Seng ended up 1.30% and the Shanghai Composite in China rose 0.20%. The news may also help to ease U.S. fears.
Also helping the U.S markets, stocks in Europe are rallying on news from Nokia that it expects to meet its first quarter earnings target. The German DAX is higher by 1.19% and the FTSE in London is up 0.85%.