Buy Stocks – Market Is One Good Day From the All-time High

Posted 9:30 AM ET - The market is one good day from the all-time high. I believe that option expiration could be the catalyst to get us there. Option premium sellers like to short calls above major resistance. If the SPY breaks out above $219 shorts will be scrambling to buy these calls back. That will spark short covering and it will give the market the fuel it needs. In the last 18 months we haven't had a catalyst. Sluggish economic growth has kept a lid on the market and historically low interest rates have provided a safety net due to a lack of attractive investment alternatives. Stocks have chopped back-and-forth in a tight range and this would've continued if Hillary were elected. Trump has aggressive policies and the market is excited by the prospects of lower taxes and reduced business regulation. Regardless of how effective the policies are and regardless of whether or not they will be implemented, the perception is market friendly and we have a catalyst. The Fed will hike interest rates in December. That will increase market volatility. We are seeing excellent rotation within the overall market and it has been easy to day trade these moves. Watch for a rotation back into tech. Wednesday we zeroed in on CARA, OCUL and OCLR and made a killing. We will look for similar today. Today I will wait for support. The news is light and once support is established I will aggressively scale into long positions. Get long and look for a steady grind higher today. If by chance the market makes a new low after the first hour, be patient and wait for the next support level. We need to make sure the selling pressure from yesterday has been absorbed. . .

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