Market Breakout Today – Aggressively Buy Calls If SPY Closes Above $230

February 9, 2017
Author: Peter Stolcers, Founder of OneOption

Posted 9:00 AM ET - The table is set for an all-time high today! The price action yesterday was very constructive. We saw selling right on the open and the S&P 500 bounced immediately. The rest of the day stocks inched higher and the market is up a couple of points before the open. Tech stocks (QQQ) have already made a new high and we are seeing follow through today. The S&P 500 is only a few points away from a new high. As I've been mentioning this week, we need to see a breakout right away or we risk falling back into the range. Major breakouts often need time to consolidate. During this phase, the bid is tested and it gradually strengthens. The S&P 500 broke out a few weeks ago. It paused and tested the breakout last week. It filled the gap and rallied above resistance. This price action is typical for major breakouts and the recent rally validates the breakout. I am getting long with confidence. Earnings season is winding down and the results have been good. Economic releases have been improving (domestically and globally) and Trump's rants are not spooking investors like they did. There is nothing to stand in the way of this breakout. Swing traders should be long calls. If we make a new all-time high during the trading day, add to positions. If we close at a new all-time high add to positions. Day traders should get long early in the day. I don't think the market will probe for support. The first move should be to challenge the all-time high. Support is at SPY $228.60 and I don't believe it will be challenged today. . I'm expecting a very bullish day and we need to make that new all-time high this week. Once it happens we will see follow-through buying the next day. Get long. . . image

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