Sustained Market Rally Ahead… the Tighter the Range… the Bigger the Breakout

December 8, 2016
Author: Peter Stolcers, Founder of OneOption

Posted 9:30 AM ET - Yesterday the market opened just below the all-time high. Stocks inched higher the entire morning and the momentum exploded once we were convincingly through resistance. Look for follow-through buying today. The longer and tighter the range… the bigger the breakout. This could be a sustained move into year-end. The benefits of Trump’s proposed economic policies are over-powering a likely quarter-point rate hike next week. Carrier, Softbank and US Steel have all made positive employment remarks and business investment is improving. Corporate taxes will decrease and $3 trillion could be repatriated. Government regulations will be retracted. China's trade numbers were decent overnight. The only potential spoiler could come next week during the FOMC statement. If they signal that another rate hike is possible in the first half of 2017, the market won't like it. This scenario is not probable since they want stable markets during Trump's transition. Any pullback is a buying opportunity. Don't be too anxious to jump on this breakout. Take a few long positions early and add on strength. I believe a better entry point will present itself in the first half hour. Any dip will be gobbled up by buyers. I plan to trade from the long side today. I will enter a few positions with the intent of scaling in on strength. We could have an excellent rally into year-end. . . image

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