Bulls, bulls everywhere.

Look forward, and you see bulls.  Look right and left and you see bulls.  Bull, bulls everywhere and the only bears in sight lye trampled under the hooves of stampeding bulls.  Markets around the world are also moving higher caught up in the excitement.  The VIX is registering no fear as the futures once again point to another gap up open.  Even though everything seems to be coming up roses, I will do what I always do ahead of the weekend.  Go to the bank by some taking profits.  Let the good times roll but never forget to take profits along the way!

On the Calendar

The first Friday of 2018 has several important reports on the Economic Calendar.  Before the market opens, we get the biggest of these reports with the Employment Situation & International Trade at 8:30 AM Eastern.  Consensus for nonfarm payrolls is 191K and an unemployment rate unchanged at 4.1%.  Hourly earnings are expected to rise 0.3% with the average workweek hours bumping up slightly as well.  The International Trade deficit is expected to widen once again from October’s 48.7 billion to 50.0 billion.  10:00 AM brings the Factory Orders report which is seen rising 1.1% fueled mostly by aircraft orders.  Also at 10:00 is the non-manufacturing index which consensus expects a slight increase to 57.6 vs. 57.4 last month.  After that, we have three Fed Speakers at 10:15 AM, 12:30 PM and 1:00 PM.

We have 11 companies on the Earnings Calendar today.  Notable before the bell is STZ, HURC, and GBX.

Action Plan

Another day and another round of new record highs.  This time all 4-indexes pitched in with new closing all-time-high prints with the Dow slicing right through the 25,000 milestone.  Stampeding bulls for as far this eye can see.  Even the President chimed in by saying, I guess 30,000 is the new target!  As you might guessed the current futures action are suggesting the celebration will continue with a gap up of more than 70 points.

Now before you decide the market is never going down again and throw caution to the wind remember gap up opens to new market highs can also be blow off tops.  Don’t get me wrong I am in no way suggesting that will happen I’m only reminding that the possibility exists.  Also, gap up opens at market highs often have a tendency to create whipsaw price action.  The market is very bullish so stay with the trend just don’t get complacent.

Trade Wisely,

Doug