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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Good Morning Traders!
Although the day started off with a little selling yesterday finished strong with the SPY and the IWM closing at new record highs. The bull continues to be strong but is does show signs of slowing it march higher so it’s wise to not chase stocks that appear over-extended.
Today in economic news we have the JOLTS report and the petroleum status numbers. I would keep a close eye on the oil number today, if we see a build i supply oil could move quickly lower taking the market lower with it however if we see supply diminishing then it could provide us with the fuel to power the charts higher.
Remember we have have a massive economic new day coming next Wednesday. As we move closer to that big day don’t be surprised to see the market lose direction and become a bit choppy. There will likely continue to be some good trading with stocks that were a little slow to rally do some catching up during this period.
Wishing you a profitable trading day!
Trade Wisely,
Doug
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Good Morning Friends!
Yesterday was sure a nice surprise with the market pushing higher as the QQQ, IWM and SPY recovered slightly from last week’s slight bearishness.
Today the futures are basically flat across the board. We have International Trade, productivity, and costs as well as factory orders in the economic new this morning however unless we see have a big surprise number I doubt they will have much of an effect. We have now entered the quiet period ahead of the FOMC next week. That means no more Fed speak until Yellen’s press conference next Tuesday.
I think there is a good chance we will see the indexes get quiet and choppy until next Tuesday as well, however, that does not mean there will not be some nice trading in individual stocks as long as we remain positive and avoid dipping ahead of the FOMC meeting.
Have a great day my friends.
Trade Wisely,
Doug
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Good Morning Friends and Happy Monday!
Well, I have to say you could have knocked me over with the feather this morning when I rolled out of the bed and saw that the Dow futures were up 90 points. After the Italian election and Trumps comments that offended China the market looked as if it was going to finally give up the presidential rally. Clearly, that is not the case. We are now seeing some of the Perma-Bulls calling Dow 20K as the new target. Now I know the Dow likes those big round numbers but that’s still more than 800 points away and I have a tough time thinking we will go straight there without a pullback.
There’s not much in the way of market moving economic news this morning however we have 3 Fed members feeling the need to pontificate so keep that in mind as the morning progress.
Have a fantastic day.
Trade Wisely,
Doug
Click Here to View the Morning Video
Good Morning Friends and Happy Friday!
This has been an interesting week in the market with several contradictions. First, we have had Dow continuing to surge higher while the QQQ decided to embrace a bearish stance. The SPY and the IWM have been displaying weakness at the highs but the selling has been tentative. Oil which had started to show signs of bearishness suddenly flipped bullish on the news that OPEC will finally cut production. Economic numbers have been very positive however that has made the market nervous that the Fed will have to increase interest rates while at the same time fueling many financial companies to reach out for all time highs. What a complex mess we have made of the simple act of company valuation!
This morning we get the Employment Situation number at 8:30 eastern time. The market which would normally want to see job increases is now worried that the number may come in strong forcing the hand of the Fed to act. If the number comes in weaker than expected we may actually see the market respond higher, but if it comes in above 200k as the ADP suggests, the market will likely respond negatively.
One thing to be sure of is that the market will keep us on your toes trying to decipher its OCD issues. I suggest managing the positions your in and avoiding new risk for at least 30 minutes of trading today to allow time for the reaction to the news to subside.
I want to wish you all a fantastic weekend and remind everyone to keep our good friend Olivia in your thoughts and prayers as she deals with her severe health challenges.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
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
Click Here to Watch the Morning Video
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
Click Here to Watch the Morning Video
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
Click Here to Watch the Morning Video
Good Morning Friends and Happy Monday.
It would appear that the market has a bit of an attitude this morning suggesting a gap lower or about 60 points. This seems to mostly be due to falling oil prices with the news that the OPEC is having trouble finalizing it’s production agreements. A pullback in certainly in order due to the huge run up after the election. A healthy pullback would most likely set up some very good trade entries so bring it on I say.
There is nothing on the economic calendar but let’s not forget today is Cyber Monday and we could easily see light volumes as shoppers seek to bag the big discounted items for Christmas.
There are a lot of really nice looking charts out there so we will plenty to choose from as we work our way through December and into 2017.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
