Market High Should Hold This Week – It Will Be Tested Next Week

I am offering a FREE TRIAL and you can see every new trade signal for every stock. Use it to find trades and check out what I am trading. CLICK HERE TO REGISTER Posted 10:10 AM ET -The market has been up and down this week and we are right back where we started. As I mentioned Monday, we are going to have a boring option expiration. China posted dismal economic results. GDP came in at 7%, industrial production rose 5.6% and retail sales were up 10.2%. All of these numbers were below expectations. Any developed country in the world would kill for these numbers, but you have to put them into context. Growth has been slipping steadily and it is hitting levels not seen since the financial crisis. Traders are not concerned. They feel the PBOC will ease and budget surpluses could be used for fiscal spending if needed. Intel warned a few weeks ago and bad news is priced in. Profits were better than feared and the stock is trading higher this morning. Earnings season will kick into high gear next week. The strongest companies announce early in the cycle and that should keep buyers engaged for the next two weeks. Towards the end of April, I believe cautious guidance will start to weigh on the market. Stocks are trading any rich forward P/E of 18. The market is trapped in a range and I don't see a catalyst that will spark a breakout. We've seen profit-taking near the all-time high for the last six months and resistance is strong. If we challenge SPY $212, I will be looking for shorting opportunities. My bullish put spreads are in fantastic shape and I am buying them back today for pennies on the dollar. I sold them early last week and these positions have generated nice income in a lackluster market. I am keeping my powder dry until next week. I will be looking for post earnings plays. In particular, I'll be looking for companies that report revenue growth and profit growth year-over-year. If the stock pulls back on the earnings announcement, I will be waiting for my trading system to generate a buy signal. Members who subscribe to 10 or more symbols will see the stocks I'm trading in Pete's List. If you have not taken the free trial, I encourage you to do so. Subscribers have been making great money on the stocks I'm trading. The market will be caught in this range for a while and I plan to trade a reversal off of the high. When I see market exhaustion, I will shift to trading the SPY and QQQ. Until then, I'm just focusing on individual stock trades The price action this morning looks good. Stocks should be able to hold the gains. We are only 20 S&P 500 points from the all-time high and I believe it will be challenged next week. Without the support of major earnings announcements this week, I don't believe the market will challenge the high before options expiration. . .

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