Good Morning Traders!

Yesterday was as expected with a little light volume chop.  I was expecting the same for today but when I looked at the futures this morning the bulls clearly have different plans.  I could not believe my eye when I saw the Dow futures up 75 points.  I jumped on the CNBC app looking for a headline that could it explain it but all I could find was a decision from the president-elect on a couple appointments.  I guess the market really likes his picks.  I have seen the market move based on a new president but I can’t remember a time when the market has moved like this every time an appointment is made.  Incredible!

We have Import/Export number this morning and a couple bond auctions but I doubt very much they will move the market this morning when released.  Keep in mind we have a huge data day tomorrow which adds another layer of amazement to the sharply bullish push this morning.

I now believe there is nothing that will stop the bulls in reaching out for a Dow 20k print and the way the market has been moving we could see it happen before the end of the week.  It would seem the market has extremely high expectations for our new leadership.  Here’s to hoping he can live up to this vote of confidence!

Have an awesome day!

Trade Wisely,

Doug

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Good Morning Friends!

I hope everyone had a restful weekend and are feeling ready to go for another busy market week.  Last week was incredible with the bulls really putting on a show of strength.  Even the Q’s which had been lagging behind managed to not only hold above the 50 SMA but also a breakout of a major resistance level.

Now the question is will the bulls be able to hold these new levels or will the bears show they still have teeth.  The economic calendar has several bond auctions and the Treasury Budget at 2 PM EDT but I would not expect them to have enough power to move the market.  If fact my guess is we will likely get very quiet and choppy until Wednesday when we get a huge data dump as well as the FOMC Announcement.

Clearly, the bulls have the advantage this morning with really no clues in price action suggesting selling at least at this point.  However, at anytime it should not be a surprise if a pullback were to begin so stay on your toes this week could be pretty wild.

Have a profitable day!

Trade Wisely,

Doug

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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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Good Morning Right Way Options!

Yesterday turned out to one for the record books as the markets.  Already over-extended the bulls put on a show force that was truly remarkable.  Markets around the world reacted higher on the back of the US bullishness and yet this morning futures are pointing to a higher open.  Incredible!

The only thing on the economic calendar of consequence is the weekly jobless claims.  I think there would have to be a huge surprise in the number to move the market this morning.

I will on the lookout for a pullback today but we could easily just consolidate.  I took some profits yesterday and expect to be taking more of the gains first thing this morning.  Taking profits is a very personal thing and if you decide to hold just make sure greed doesn’t get the better of you.

Have a wonderful day!

Trade Wisely,

Doug

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