BOOM – Trump Sparks Market Breakout – Buy Calls Aggressively

January 25, 2017
Author: Peter Stolcers, Founder of OneOption

Posted 9:00 AM ET - Donald Trump is pulling all of the right levers and the market loves it. The pipeline and the wall will be built, business regulations will be greatly reduced, government headcounts are being slashed and he is meeting with unions. Good news has been priced in, but the market wanted to see him in action. This morning we are breaking out to new all-time high and this move will have legs. During the last month the market has compressed near the all-time high. Tight ranges like this tend to produce big breakouts with sustained directional movement. Earnings season is in high gear from this point forward and mega cap tech stocks have yet to report. Buyers will support this breakout and it's time to buy calls. In my market comments the last few weeks I have pointed to a January breakout. The breakout did not look very likely yesterday morning, but that changed very quickly. The volume was strong and this looks like a great move. Swing traders, jump into action. Don't dilly-dally around on the open. Buy some calls and start scaling in on follow-through. If you don't buy on the open you risk paying a lot more throughout the day. The risk of a small market pullback on the open is relatively small compared to the upside you will miss I like buying calls on cyclical stocks. Day traders, get ready for action. I plan to day trade aggressively from the long side all day. The gap up might be a little overextended so spend the first 15 minutes lining up your candidates. If the market continues to grind higher, don't hesitate to buy. We've been waiting for a catalyst and Donald Trump is it. The market loves what he's doing and we have the technical breakout we need. Use SPY $227 as your stop today and raise the stop to $228 if we close above that level today. . . image

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