The Bulls are firmly in control.

The Bulls are firmly in control and the Bears are either running for their lives or have gone into hibernation.  The news of the 23K Dow print spread like wild fire yesterday afternoon.  The President even chimed in on the subject as he was pushing for the tax reform legislation.  Those sitting out are really feeling the pressure of missing out right now and are likely to charge in pushing us even higher.  It may seem completely irrational and nonsensical to you but for goodness sake don’t try and fight this move.  To do so would be akin to trying hold back the tide.  Also don’t become complacent or chaise.  Focus on price and have a plan!

On the Calendar

We begin the hump day Economic Calendar today with Housing Starts at 8:30 AM Eastern.  The September consensus is 1.170 million annualized starts and 1.238 million permits which constitutes a slight slowing in both metrics.  At 10:30 AM the EIA Petroleum Status report will be released.  I think most are expecting to see demand growth and supplies continuing to decline slowly.  Then at 2:00 PM is the Beige Book and the Treasury Budget which come out about 2 weeks prior to the next FOMC meeting.  It’s unlikely they will move the market.

The number of reports continue to shuffle around a bit but today the Economic Calendar has about 80 companies reporting today.  AXP, AA, EBAY, UAL, UTI, KMI are just some of the notable reports today.  Please make sure to check reporting dates as part of your daily preparation.

Action Plan

Although I was sitting in a doctor’s office I caught the close on my phone and was not surprised to see new record highs once again.  For a moment the Bulls push the Dow over 23,000.  On my drive 2-hour home I was flipping through the radio stations and heard at least 3 reports on the 23k print and even a sound bite from the President.  I thought to myself the “Fear of Missing Out”, crowd will likely gap the market higher tomorrow.  As of now, that thought seems appears correct, with the Dow futures pointing to more than a 50-point gap up.

Don’t chaise but stay with the trend.  The bulls are firmly in control and as long earnings report continue to be mostly positive higher prices are likely.  Remember to take some profit along the way to relieve pressure on trades.

Trade Wisely,

Doug