The Breakout Will Hold Next Week – News Vacuum – No Speedbumps

I bought some ITM calls on a stock that expire today. CLICK HERE TO TAKE THE FREE TRIAL. You will see the trade it in the chat room and you will see the stocks I'm trading in Pete's List. Posted 10:00 AM ET - Global markets have been providing a positive backdrop for stocks and the S&P 500 continues to grind higher on light volume. There are only two economic releases worth mention next week and I don't see any speed bumps ahead. Look for a bullish bias on light volume. The FOMC minutes were fairly dovish this week. Janet Yellen will speak today and her comments should be market friendly. Flash PMI's came in a little light, but global markets pushed higher. Durable goods orders will be posted Tuesday and GDP will be released Friday. We are in a news vacuum and the jobs report will not be released until June 5th. If you followed my advice you sold bullish put spreads two weeks ago and they are in nice shape. This strategy allowed us to keep our distance and to take advantage of time decay. My put credit spreads have plenty of breathing room and time decay is kicking in. I expect the market breakout to hold next week and these positions are on autopilot. I have also been buying low-priced stocks that are breaking through horizontal resistance. Because I'm long the underlying shares, I don't have to worry about time decay. I've been able to find some great stocks and these moves tend the last at least a few days. If the breakout fails, I stopped the trade out. I have been sticking with these positions until the momentum stalls. I am not aggressively buying this breakout. I still don't trust the market and I doubt Asset Managers will be chasing stocks when they're trading at a forward P/E of 18 and when global economic conditions are soft. If the SPY closes below $212, I will reduce risk. My bullish put spreads are in great shape and I will buy some of them back to lock in profits if this happens. Memorial Day will suck the life out of the market next week. Look for quiet trading with a bullish bias. The action will fall off dramatically after a couple hours of trading today. We should see a very tight range. I hope you have a safe holiday. Please take time to honor the men and women who have proudly served our great country. Happy Memorial Day! . .

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