Good Morning Friends.
This morning the futures are fluctuating back and forth between a slightly positive to slightly negative open after closing yesterday and new record highs. There seems to be little to no interest in profit taking before the holiday at this point however, we will have several economic reports today that have the potential of moving the market.
After the morning rush, I would expect to see volume drop like a rock although we could see a little activity right after the FOMC minutes are released. My plan is to manage the positions that I’m in and work on watchlists today. Anything is possible but I think its unlikely I will be sending out new trades today.
Of course, the market is closed on Thursday and Friday it will only be open half a day with very light volume. Due to the holiday RWO will be closed both Thursday and Friday so there will not be morning videos or an open RWO room both days. We will get back in the saddle on Monday and hopefully the market will remain bullish.
I wish you all a safe and Happy Thanksgiving.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good Morning Friends.
As turkey day draws near the market continues to climb with the Dow leading the way. The DIA, IWM, and the SPY have all made new record high levels but the QQQ has yet to do so. Looking at the chart I suspect it will catch up and print a new record high soon, possibly even today.
WE have existing home sales on the economic calendar at 10 eastern time today . This number in the past proven to move the market so wait and watch for the reaction.
There is little left to say this morning except we could easily see volumes dropping today as may traders will likely head out early for their holiday plans. The market is bullish so it’s okay to get long but I would use caution about getting too long ahead of the holiday.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good morning traders.
It is always nice to travel but after being gone for a week it’s also great to come back home. Last week was a crazy week with 4 AM wake up calls and long days at the show but I wouldn’t have missed for the world because we had the chance to talk with so many wonderful people interested in trading.
I have to admit I was surprised to see how well the market held last week. I have been expecting a pullback but it appears the market is so bullish that a consolidation may be all that we get. I have quite a few charts of interest that I will be watching for potential trade entries so keep an eye out for the alerts. I also have to acknowledge the potential of a light volume week with Thanksgiving on Thursday and the FOMC minutes just the day before.
It’s great to be home and getting back into a routine. The RWO room will be back open today at 11 AM eastern so I hope to see you all there.
Trade Wisely,
Doug
Click Here to Watch the Morning Video
Good morning everyone from the Las Vegas.
The last day of the show so Monday everything will return to normal operation Monday morning with morning videos and in the RWO room we will crank it up and get back to training.
The market sure has a way of keeping us humble. Yesterday I suggested that further pullback was possible and that financials being so overbought could lead the way. As you know it turned out just the opposite with the market closing up and financials led the way. This morning Dow futures are just slightly lower suggesting a little weakness at the open but Friday’s have tended to be pretty positive of late. The one thing tossing caution into the mix today is that it’s option expiration day which means anything is possible and the price action can be a little wild.
I know it’s tempting to chase right now but would encourage you to not do so. We all know that stocks will retrace in due time. Chasing is a bad business and can get you in just before the pullback putting in you in a losing positions right from the start. At times like this it is far better to maintain your discipline and wait for the better entries.
A few charts that are setup to move. ANF, TSCO, TTWO, CARB, AGX, VSTO, SWKS, BMY, AMKR, PCRX, GIII, ZOES, EDIT, VHC, RT. There of course are many others that loop pretty good but to be honest yesterday was so busy I didn’t get nearly as much tome to look at charts as I would have liked.
FYI; there is no video attached to this email because we are at the money show in Las Vegas. Videos and normal operation will return next Monday. Thank you for your understanding.
I wish you all great trading today and an awesome weekend. See you Monday!
Trade Wisely,
Doug
Good morning everyone from the Las Vegas.
As I have been watching the futures this morning it seems the market is searching for direction. Clearly the Trump rally continues to keep us overbought for the very short term. If you haven’t taken any rally profits as of now I would sure be thinking about that this morning.
A few stocks that have really good setups this morning are TSCO, BMY, CPB, CORE, GIII, IBM, BBY. Keep an eye on AMD, SQ, PAY and ANF. There are many, many more that could setting up when and if we get a little more pullback or longer consolidation.
I would keep an eye on the big banks. So many of them seem to have really over extended. A pullback in this sector could be the signal of further profit taking.
Make no mistake I am all kinds of bullish and believe the market has made a fundamental shift that should provide much better trading the months ahead. Continue to prepare by building and marking up watchlist charts.
FYI; there is no video attached to this email because we are at the money show in Las Vegas. Videos and normal operation will return next Monday. Thank you for your understanding.
Have a fantastic day.
Trade Wisely,
Doug
Good morning everyone from the Las Vegas.
Top of the morning friends. This run has been extremely hot but we all knew it could not stay like this much longer. This morning the Dow futures are suggesting a gap down of about 50 points and although its a bummer to see some selling that’s just what I was hoping would happen. A healthy pullback could and most likely will setup some very good entries.
This has been a very long time coming but I believe the bulls have taken control and will remain in control through the end of the year. However, because this was and extraordinary run up don’t be to surprised if the selloff seems a bit harsh. There is no doubt that the market has been fueled up on heavy emotion after the Trump win. Emotions can switch very quickly and possibly over do it with the selling as well. Soon cool heads will prevail and the price action will settle down in a trend that personally think will be bullish.
I think today the best thing to do is manage the positions that you are in and avoid adding new risk. Again this is exactly what needs to happen so quality entries with stops set just below new levels of support. Also keep in mind that a consolidation that sets a level of support is just as good as selloff, so it we simply pause and rest for a little while we should be able to find very good entries.
FYI; there is no video attached to this email because we are at the money show in Las Vegas. Videos and normal operation will return next Monday. Thank you for your understanding.
Have a fantastic day.
Trade Wisely,
Doug
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
