Good Morning Right Way Options and Happy Friday!
Everyone watching the market could have easily assumed that the day after a 300 point move in the Dow that some profit taking and selling would have occurred. After all that what happens normally, right? The thing is I don’t think we are in a normal bull run. I began saying after the election that we had seen a fundamental shift in the market to what I call a Super Bull. I have only seen one in my trading career and it occurred during the Dot.Com craze in the late 1990’s. Yes, I am that old! Should this market pullback? Yes! the question is will it and how long will we have to wait for it? As for me, I will continue to trade long until the market says otherwise because I really don’t want to miss out on the easy profits of run this strong. The price action will tell us when it’s over and as of right now it says no such thing.
Now having said that we must always be aware a rollover is possible and have a plan to protect our capital when it occurs. Always have an exit plan before entering a position!
Today we have Consumer Sentiment numbers which should be pretty positive given the strength of the market. Keep in mind that next week we have a huge amount of data coming out on Wednesday. If the market gets a little soft and choppy ahead of that big data dump don’t be to surprised. Friday’s have been pretty positive days of late and there is no reason to believe at this moment that it will be any different today.
Have a great day and I wish you all fantastic weekend!
Trade Wisely,
Doug
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