Market Rally Ahead – Hold On To Your Calls
Posted 9:00 AM ET - Yesterday the market probed for support and the damage was minimal. Buyers stepped in before the low from Monday was tested. Gradually the bid returned and the market closed higher. We are seeing follow-through this morning and overnight earnings are adding fuel.
I've been urging you to get long aggressively the last few days. We could see a 15 point S&P rally today. Mega cap tech stocks are moving higher and they have room to run.
The budget resolution should get passed tomorrow. The focus will shift to tax cuts and that is market friendly.
Q3 earnings will climax in a week. The strongest companies announce early in the cycle and the guidance was incredible. Top line growth and major cost cutting in recent years translates into healthy profits.
Swing traders should have a full position of calls. Look for the breakout and ride the next wave higher. This run could be the last decent one of the year.
Day traders need to be cautious. I have only been day trading when the market opens lower. Once support is established I buy futures. The market gradually rebounds and I exit before the close. This pattern will not last, but for now it is working.
Get ready for a good run
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