Futures were pointing towards a strong open and we knew when we were typing this morning’s update the bulls would be “good to go”. We have been waiting for months to break out of a trading range from hell and we said once we did we should see a strong breakout. Bingo. We are getting it today and we said investors would be chasing this rally as the momentum is strong.
It’s hard to explain why the market is going up with so much uncertainty and risks being taken but trends are trends are the current one has been bullish. How it all ends remains to be seen but the Fed has basically thrown the kitchen sink at Wall Street begging for higher prices.
You see, a higher stock market means people are going to start seeing their investments go up, their 401k’s, and maybe start to spend more. With the Fed committing $600 billion, or $75 billion a month, to buy Treasuries, they are betting on Wall Street without you knowing it.
That is why you have us.
The Dow has powered through its 52-week high of 11,258 and is up a whopping 180 points, or 1.1%, to 11,356. Our near-term target is Dow 11,500-11,600.
Roll out the red carpet, the S&P broke through the 1,200 level and is up 14 points to 1,214. The index has run into the last remaining layer of “resistance” and needs to take out 1,220 for us to feel “safe”.
The Nasdaq is powering higher by 32 points to 2,545 and looks poised to test our next target of 2,600.
We have a lot to cover in our Members Area as a number of our trades are showing strong gains. We have reviewed our stop targets to protect profits but we will continue to ride the bulls’ back higher until the trend changes. We will be back in the morning with a full update and more specific company coverage but we have some important updates our subscribers need to check.