Good Morning RWO.

I hope everyone had a fantastic weekend.  I’m not 100% just yet but doing much better so everything should be back to normal if there is such a thing.

The Futures are pointing to a lower open this morning an because the gap down is a slightly larger than we have been seeing lately it’s common to have an emotional reaction and thinking the sky is ready to fall.  However, if you look at the index charts you will see that there is a reason to raise your caution level but at least now there is no need to panic.

MS reported great earnings this morning and that help to lift the futures off the lows.  Don’t forget the power of earnings session and the influence it has over the trader emotion.  On the economic calendar, we have the empire state number this morning but I doubt it will have much effect unless the number is a major surprise.  We have several Fed speakers today and it looks as if they will keep the hot air circulating the rest of the week.

For today raise your caution level just a little and watch the charts.

Trade Wisely,

Doug

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Good Morning and Happy Friday!

Yesterday turned out to be a nasty whipsaw and justifying my words of caution.  Today it’s all going to be about the big economic reports and earnings.  Both PPI and Retail Sales will be out prior to the market open and we will likely have seen reactions to bank earnings before the open as well.  Anything is possible.  If everything were to come out bullish then today could be the push through 20K with the increased volatility.  If the market is disappointed in data it’s that same volatility that could quickly break through supports.

All we can do is wait, stick to our rules and avoid emotional decisions.  I think today it would be wise to give the market 15 to 30 minutes to calm down before making any decisions on new risk.

RWO will be open today as long as my voice will hold out.  I look forward to getting back to my normal schedule..

Trade Wisely,

Doug

Click Here to Watch the Morning Video

Good Morning friends!

I will spare details but need to let everyone know that I will not be able to do a video today or open RWO.  The good news is after a really rough night I think I’ve finally started to turn the corner.  I simply need to rest toady and I believe I will be back on my feet Friday.

The market witnessed a good deal of volatility yesterday afternoon in reaction to the Trump press conference but managed to close the day with bulls in control.  the bullish did not transfer around the world with Asian and Euro markets all selling off.  As a consequence, the futures are suggesting a lower open.  A little selling in the morning doesn’t bother me because we are still in consolidation zone but coupling that to the intra-day volatility change and caution lights begin to light up in my head.  It may be time reduce holdings a become extra watchful for clues that the bears may be gaining an edge.

BMY really let us down yesterday and I think it would be best to close the position altogether.  We will still maintain a small profit on the overall trade due to the profits on the short strike but depending on your commission it may be a wash.

MSFT is looking good so as of now I would continue to hold this position.

Today there will be a flurry of news with Fed speakers and congressional hearings on some of the Trump appointees.  Congress has the potential for soap-opera style drama during such events which can, of course, create emotional market responses.  Also keep in mind that several of the big banks will begin reporting Friday morning.  Obviously, banks have enjoyed sharp rallies after the Trump election.  Most are suggesting we will see substantial growth in bank earnings last quarter but the question on everyone’s mind is will there enough improvement to justify the current prices.

Anything is possible so it’s very important to simply follow the charts, avoiding prediction and personal biases.  I know there are many thinking the market is way overbought and that may be true but all we will need is good earnings reports to push the markets even higher.  All that said, be a little cautious today, protect your positions, take profits and trade based on the price action of the chart.

Again, there is no video attached today and the RWO trading will be closed again today.  Very sorry for the inconvenience.  I promise I make it up to you!

Trade Wisely,

Doug