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

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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

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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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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

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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

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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

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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

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