Buy Calls – Market Will Grind Higher – Dips Will Be Brief

Posted 9:00 AM ET - The market has been waiting for a catalyst and it has one. Investors are encouraged by Donald Trump's aggressive actions and the S&P 500 surged to a new all-time high yesterday. This was a major breakout and we can expect follow-through buying the rest of the week. In my comments yesterday I urged you to buy calls and not too dilly-dally around. I knew the table was set for a massive rally and the chances of missing the move were great. Stocks shot higher on the opening bell and they never looked back. We might see a little nervousness ahead of the FOMC next week, but any pullback will be a buying opportunity. Earnings season is in high gear and we will hear from Google, Intel and Microsoft after the close today. These reports will attract buyers and I'm expecting positive price action today. This is been a fairly tight trading range and that means the breakout should lead to a sustained move. Swing traders should buy calls on stocks that are breaking through horizontal resistance on strong volume. Make sure that you do not hold these calls over earnings announcements. Day traders, be a little patient the first 15 minutes of trading. If we start to grind higher, start scaling into long positions. If we are above the first hour high, add to long positions. Get long. We have been waiting for this breakout and now we have it. I am aggressively trading from the long side. . .

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