Good morning everyone from the Las Vegas.
I was quite surprised to see another record high yesterday. About mid-day I was able to login and saw that low was really moving lower and the the tech’s were having trouble I fully expected to see a negative close at the end of the day. As always the market has a way of keeping you humble!
This morning we have the big Retail Sales numbers that have the potential to move the market. There is also the empire state mfg. and import export numbers but unless they turn in a very big surprise its unlikely they will have much of and effect.
I looked at a lot of charts last night (maybe around 1000) and see so many that are very over extended that I can’t help but thinking a pullback is way overdue. Chasing into a run like this can be very dangerous unless you are nimble so at this time I am not recommending new option trades. When the pullback comes we will have great entries near new support levels rather then chasing in at what could be new resistance. Having said that I do have a short list of stocks that could easily turn into trades if you have the ability to watch them during the day so below is a list to give you some ideas.
CVCA, MCRB, NRG, CCJ, CIE, ANET, IGT, RIG, BMY, VLO, PAY, MOS, SBUX, LBLA, NAV, CBS, CC, BEAV. From this list my favorites for possible trades today would be IGT and BMY.
There is no video attached to this email because I don’t have the ability to produce them on the road.
I wish you all a fantastic day of trading just be watchful for a pullback soon.
Trade Wisely,
Doug
Good morning everyone.
The run up after the election has been truly amazing but it is now getting overextended in the short term and we should not be surprised if the market begins a pullback soon. Make no mistake I am not bearish on the market, as a matter of fact, I have not been this bullish for more than a year. If and when we get a pullback should be the time when the very best trading will be available. We will be able to get in with stop loss orders very close to minimize the risk and for the first time in a very long time have an actual bullish trend in the overall market. So be prepared for a lot more trading if that does come to pass as I’m expecting. Keep a close eye on the QQQ, with the troubles it had last week it could be the clue that gives us a heads up to the beginning of a pullback and be the leader down.
This week keep an eye on the economic news. There are a bunch of reports mid-week that have the potential to really moving the market around. There are also Fed members out speaking every day this week and as you know they can really make the market react wildly at times.
I am leaving for the airport this morning and will be at the Money Show in Vegas the rest of the week. That means I will not have the ability to conduct the 2-hour RWO sessions every day. They will resume next Monday.
The Morning Thoughts will be in text version only because I will not have the ability or the bandwidth to make and produce videos. I highly recommend logging in the RWO members page every day. You will find the text version under the Morning Videos tab.
Any new trades you will find them posted under the Trade Alerts tab in text version only. Please go there every day to check for new trades. All the trades this week will have to be planned at night. I will not have the benefit of watching the market open or seeing the pre-market activity. Each of you will have to manage any new trades as you see fit as I will likely not have access to the market from the show floor to be able to monitor the trades intra-day. I, of course, will review all trades in the evening and post updates as necessary.
Have a fantastic week everyone.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good morning everyone.
This has been one amazing week. If you’re like me you are so happy to have the election behind us and the market moving again with and abundance of bullish energy. I’m now expecting some very good trading ahead of us at least through the end of the year.
With the market having moved so far so fast it would not be out of the question to see some profit taking as we head into the weekend. However, with the SPY and the IWM still wanting to reach out to new record highs the possibility that the bulls will continue to run still exists.
For me, I will maintain my discipline wait for pullbacks and enter trades where the risk to my stops has been minimized. I would like to say thank you to all the members of Right Way Options for hanging in there during this tough market. I can promise you I will be working hard to make sure it was worth the wait. Have a wonderful weekend!
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good morning everyone.
After the overnight temper tantrum, the market decided to embrace the leadership change in a big way with an unbelievable rally. That exuberance seems to still be in play this morning with the futures pointing to another gap up.
Right or wrong I am going to maintain my discipline and avoid chasing stocks that are already very extended or those challenging resistance. In years past I would have jumped into trades thinking, I was avoiding the pain of missing out only to step in right before the pullback where the cost my capital was the greatest.
There are a lot of good looking charts so I recommend sticking to your rules and avoid taking an unwarranted risk, it will settle down. I do however think we are seeing the beginning of a fundamental change in the market that is very exciting. I expect we will soon be doing a lot of trading. Watch your email for possible trades.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good morning everyone.
The people have spoken and what they had to say has left the market shocked. As the vote came in and Trump began to gain ground the market began to sell off sharply. At one point the futures were off about 750 points. When the Trump win became obvious the futures began to bounce and as I write this the futures are only down 230 points. History tells us there is a pretty good chance that over the next couple days the market will dip lower toward the overnight lows, however, we are in uncharted territory so anything is possible.
I plan to stand aside and let some of this volatility and emotional response subside before putting new capital at risk. The good news is that big reactions such as this historically resolve higher within a couple weeks. Let’s keep in mind Trump will not take office until the latter part of January so the market will have plenty of time to come to grips with this big directional change the country has voted for.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good morning everyone.
Election Day 2016 has finally arrived, the robot calls will end, all that hot air will dissipate and perhaps we can get back to some normal market activity. I hope that I’m wrong on this but I fear is that although the campaigns are behind us the lingering effects of this election will haunt us for weeks, months and maybe even years to come. I’m expecting to see considerable volatility as we sort out the damage that has been created. No matter who wins we should all be prepared for a substantial gap Wednesday morning in either direction.
It is my intention to continue to sit on my hands today to protect my capital against the unknown outcome and the emotional reaction that will likely occur. Just imagine we had been trading with the market direction and had been holding a portfolio of short trades yesterday. That would have been painful!
There is little in the economic news that will affect trading today so don’t be surprised if we see choppy price action as America votes.
No matter the outcome I believe better days are ahead for the market and a trade-able direction will emerge. Get out and Vote!
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good morning everyone.
A wild Monday morning in store for the market as it reacts to the news that the FBI finished its review and the director informed congress that his July decision stands. The Dow futures are suggesting a big gap up at the open of more than 200 points, however, when you looks at the charts you will see nothing has changed and the downtrend continues to be in effect.
The morning gap will do us no good unless there is follow-through buying after the open. It is possible we could see the market simply chop around near that opening range because we still have the election to deal with tomorrow and the polls have it so close that anything could happen. It is also not out of the realm of possibilities there is selling into the morning gap move slowly and plan carefully if you do decide to trade.
As for me, I’m very content to continue sitting on the sideline and waiting to see how the market reacts after the election. I’m also happy to be sitting mostly in cash while I wait.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good morning everyone.
It’s Friday, and I for one am so glad the last weekend before the election is here. Let’s cross our fingers and hope we can return to some normal market price action once the election is behind us.
Today we have the Employment Situation number and International Trade report at 8:30 eastern. Both numbers have the ability to move the market under normal circumstances but with the election pending, normal seems nearly impossible to achieve. Currently, the Futures are pointing to a slightly bearish open but after the economic reports, anything is possible. With the SPY, IWM, and DIA so very close to the 200-day average we should not be surprised to see price move that direction and even pass through before a relief bounce occurs. I do however think the charts are telling us a relief bounce is near and possibly even today it could occur.
With it being Friday and just before the election I doubt very much there will be any new trades today but never say never. If you have been looking for a great day to take off this may be your opportunity. I’m confident better trading on the way soon. Have a fantastic weekend everyone.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good morning everyone.
As the major indexes draw nearer the 200-day moving average greater is the probability price will be drawn right down to it. However, there is always the possibility of a very short-term oversold bounce that could occur prior to the 200 test. The futures are slightly bullish this morning but I sure wouldn’t believe the selling is over just yet.
We are now 5-day to the election and the jittery market is trying to deal with changing polls and the reality that it may be too close to call. We have several economic reports this morning and although they do have the potential to move the market it’s likely the election will trump everything else. No pun intended. Keep in mind we have the big employment situation number Friday morning so expect light volumes after the morning rush.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good morning everyone.
Yesterday we finally saw the bears step and give the market a push on election fears. As a matter a fact it seems everywhere we look there seem to be uncertainty and there is little that the market dislikes more.
Today at 10 eastern we get some Oil numbers that lately can move the market around but the big news of the day will be the FOMC at 2 PM eastern time. I think a .25 basis point increase in December has already been baked into the cake but if the FOMC surprises the market we will likely see a very big reaction. Until the release, however, there will likely be very light volume accompanied by choppy price action. As if we haven’t already had our fill of chop!!
I think we need to continue to stay small and remain cautious. Yesterday was a big move but I don’t think we have seen the full measure of it’s potential just yet. The good new is we seem to be getting closer to shaking loose of this 2-month long range. No matter which direction it decides it will be a welcome change. So hang in there, better trading is on the way.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
