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Tuesday, December 13, 2016

Early Rally Could Be A Head Fake - Use Caution Ahead of the FOMC


One Option Trading Blog http://ift.tt/2gH2Rxx Posted 9:30 AM ET - Yesterday the market tried to push higher on the open and profit-taking quickly set in. Stocks spent the day in negative territory and I question the gap higher this morning. Higher opens are difficult for us to trade. Relative strength is harder to spot and we don't know if the gains will hold after a big market rally last week. Consequently, I will sit out the first 45 minutes of trading. I am also noticing that it is harder to make money on longs. The rallies are not sustained and the price action is two steps …

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