New stop on close above $79

DPR Update:  New stop at $78.25.

This is a very volatile market right now after months of small moves.  This morning was typical of the fear that has gripped the market in the last couple of weeks.  At 8:30am the consumer price index reported a rise of 0.5 percent in January. Economists polled by Reuters expected a gain of 0.3 percent.  The S&P 500 Futures dropped like a rock 40 points in 2 minutes.  This is a seismic move in such a short space of time.

I was bracing myself to be stopped out around breakeven at the open.  Thankfully, the market recovered and rallied all day long.  There may still be a re-test of 2650 in the S&P, but it is more probable that the low is now in.  Either way my stop should register this latest trade as a winner.  Just how big a winner is up to Mr. Market.  But it closed up 6.38% today, so great trade so far.

Happy valentines day!

John