The bulls have the theme song made famous by Swedish rock band Europe on their minds today after pushing the market higher at the open. The gains have held from the open but the major indexes are having trouble at resistance heading in today’s elections. The Airline and Financial sectors have weighed on the momentum and the tone is positive but it will take a lot for the market to close above resistance.
The bulls will likely test resistance into the close and the bears could show up late like they did yesterday but the fireworks will likely play out over the rest of the week and into next which should set the trend in motion for several months (at least we hope).
The fact that oil is ready to break out to new highs ($84, up $1 a barrel) could be weighing on the Airlines as shares of AMR (AMR, $7.72, down $0.02), Delta Air Lines (DAL, $13.61, down $0.11) and United Continental Holdings (UAL, $28.07, down $0.33) are all slightly lower. Tip of the day…never buy an airline stock.
A lower dollar has helped the metals. Gold is up a buck to $1,351 an ounce, silver is higher by 16 cents to $24.71 (read Sunday’s Weekly Wrap), while copper is up 4 cents to $3.83.
Many of you know we have been calling for a market breakout and we went over support and resistance this morning. In fact, we think there could be a lot of investors chasing this rally if the bulls break through.
As we head to press, the Dow is up 78 points to 11,203 while the S&P is higher by 10 points to 1,194. The Nasdaq is showing a 25 point pop and is at 2,529.
WE HAVE A NEW TRADE TODAY, RIGHT NOW!!!
We also are in a number of other open trades that are bullish and are showing solid gains. We have raised our stops targets on a few and there are other trades we are eyeing in case there is a reversal or a continued rally. There isn’t much to say except to sit back and enjoy the ride higher. Subscribers, check the Members Area for the NEW TRADE and the latest updates.