Should I stay or should I go?

An old song lyric seems to describe my thoughts this morning.  “Should I stay or should I go,” by The Clash.  As most of you know, I consider Friday to be Profit Day as we head into the uncertainty of a weekend.  Even though we saw a tiny bit of profit taking yesterday in the overall market, our current trades mostly managed to move up.  Yes, the weekend is uncertain, but as of now, the overall market is still very strong with the future pointing to a higher open.  So what’s a guy to do?  Focus on price action and let it lead the way!  If I see the bears stepping in, I may begin to trim risk and put some gains in the bank.  If the bulls remain strong, I may lean toward letting them ride because of the comfortable gains we currently hold.  Of course if your nervous or would sleep better by reducing some risk than by all means do so!  You can’t go broke taking a profit, and you can always reenter on Monday.  What ever you decide focus on price and remember Price is King!

On the Calendar

There’s no rest for the weary on this Friday’s Economic Calendar having the most important reports of the week.  It all begins before the market opens at 8:30 AM Eastern with the Consumer Price Index followed directly by Retail Sales numbers.  Forecasters see a 0.2% in the core number and 0.6% increase in energy.  The year-on-year number is expected to rise, to 2.3%.  Hurricane replacement sales and higher gasoline prices are expected to bloat the Retail Sales number today.  Consensus see’s a rare 1.8% as a result.  Of lesser importance, Business Inventories and Consumer Sentiment are both at 10:00 AM followed by the Treasury Budget at 2:00 PM.  We have 3 Fed Speakers today, and Janet Yellen speaks on Sunday.

On the Earnings Calendar, we have 20 companies expected to report today.  Especially notable will be BAC and WFC which both report before the bell.  PNC and JBHT also report before the market opens today.

Action Plan

Yesterday proved to be another record high intraday on the DIA, SPY, and QQQ’s but it was unable to hold on to that level into the close.  Although some selling occurred, it was very light and choppy.  As I write this, the Futures are pointing to a slightly higher open.  BAC has already reported beating estimates by 3 cents a share.

Because it Friday I will be focused on profits but because I’m pretty comfortable with the current positions a hold over the weekend is possible.  Of course, price action, as always will be the key decision maker.

Trade Wisely,

Doug