The Final Battle Between Resistance and End of Quarter Window Dressing

Once again the end of quarter window dressing won the day and pushed the resistance battle line forward.  The Nasdaq front line gave way altogether and as a result reached record highs.  The futures are hinting that the Bears have gathered some reinforcements overnight for the final 1st quarter showdown.  The first quarter of 2017 will go down in the books as tremendously profitable for most traders.  Big firms will finally have a chance to post hefty returns, therefore, they will do all they can to prevent a selloff.

Events to Consider

On the Economic Calendar, we have Personal Income and Outlays, the Chicago PMI and Consumer Sentiment reporting numbers.  The Personal Income is the big number of the day and the most likely to move the market.  Although important the PMI and Sentiment number are unlikely to have much effect unless they post a big surprise.  Also closing out this quarter we have Fed speakers that feel they still have something noteworthy to say about interest rates.  Personally, I’m hoping this is the end of Fed’s new tour because every time they speak they risk having a market effect.   Last but not least we have over 100 companies reporting earnings today.  It’s odd to have so many reports at the end of the quarter so consequently, we must be vigilant in managing our accounts.

Plan of Action

Today is Friday and as a result, I want to collect my paycheck.  Therefore I will be looking to trim risk positions ahead of the weekend and bank some tasty profits.  Because the market is pressed against resistance I will also be looking for good short trade setups.  Today could prove to be a very busy day.

I wish you all a profitable day and a fantastic weekend.  Keep in mind this Saturday at 10 AM Eastern time I will be doing the RWO E-Learning session.  The topic will be shorting setup and strategies.

Watch Morning Video | Right Way Options

Trade Wisely,

Doug