Good Morning Friends.

The big move in oil yesterday inspired the bulls yesterday to reach out for new record highs in Dow but that early enthusiasm seemed to fade as the day progressed.  The SPY, IWM, and QQQ all turned in bearish signals and a concern that the bull run could be running out of energy.  Clearly, we are short-term overbought but the question is will the indexes actually pull back strongly or could it be just a choppy resting consolidation?  I don’t have an answer to that because my crystal ball is on the fritz but do think that the bulls have been very hungry for a long, long time and don’t think they will give up easily.

Once again we have Fed members out today in what has become a nonstop conversation about interest rates.  Will they, won’t they blah, blah, blah.  Here’s a thought, shut up and make a decision!  Of course, we have the normal jobless claims this morning as well as ADP, ISM, PMI and pending home sales numbers out this morning that could move the market this morning.  However, my guess is we will see a choppy low volume market most of the day as we wait for the big Employment Situation number on Friday morning.

The long and short of all this is to be a little cautious this morning and avoid chasing into positions.  Good things come to those who maintain their discipline and resist emotional decisions.  Have a fantastic day!

Trade Wisely,

Doug

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Good Morning Traders.

At the close yesterday, it sure looked like the market would be selling this morning but the bulls refuse to give up this bull rally at least at the moment. As I write this the Dow and the S&P futures at pointing to new record high opens. One reason for the sentiment change is that OPEC is planning a production cut and the other seems to be appointments made by Trump getting a market approval of his selections.

We have a bunch of economic numbers today as well as several Fed speakers so there are plenty of ways the early bullishness could be toppled so keep an eye on the headlines for clues of a possible shift.

Currently, the RWO holdings seem to be well positioned to benefit from the market bullishness so make sure you have your profit orders in place just in case the morning pop reached out and grabs them. Have an awesome trading day!

Trade Wisely,

Doug

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Good Morning Friends.

Yesterday we finally saw a little profit taking take place which was way overdue in my humble opinion.  Now the question on everyone’s mind is how long will it last and when should we start buying?  I wish it was in my ability to tell you the exact date and time but as always the best we can do is wait for the price action on the chart to tell us.  Until then relax, watch and avoid the temptation of predicting.

There are clearly so many bullish charts setting up right now if we will have the privilege of being very picky.  There is no need to feel pressured or rushed the trades will come to us if we just let them.

This morning we will get a reading on GDP at 8:30 eastern time.  The market has a tendency of reacting to this number so keep an eye on the pre-market futures.  As I write this they are pointing to a slightly bullish open but that can quickly change depending on the market’s reaction to the number.  We will also hear some Fed speak this morning so anything is possible when they begin to pontificate on rates.

My personal bias based on the close of yesterday is for more profit taking to take place but we all know the market could care less about what I expect or want.  Have a fantastic day.

Trade Wisely,

Doug

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