It has been a big day on Wall Street as General Motors (GM, $35.35, up $2.35) and some great economic news have revved up the bulls’ engines. The market has powered its way back towards its April highs and is up 1.7%, on average, as the major indexes push towards a breakout.
We were betting on a bullish day which is why we issued two new call option trades yesterday to our subscribers. In our video, which we released earlier this morning explains why today was so bullish and what we see with a few of our current trades. The bears were unable to break support on Wednesday and they tried several times before throwing in the towel.
With GM on deck, there was no way the bulls were going to let the market flop. Now, that’s not to say we have the “all clear” sign again but we mentioned in our Members Area this morning how this year is setting up just like last year. We were talking about one of our trade recommendations and the market in general. In fact, here is an excerpt:
“The other part of the story was to remind you that things could get volatile in the market. On Black Friday, 2009, the Dow fell nearly 300 points in a half session and traded in a range of 10,454-10,179 before finishing 150 points down. The index hit a low of 10,207 by the second week of December before touching 10,600 by year-end and then 10,763 by mid-January 2010. And here we are now.
Just remember this if things get volatile. We may be looking at the same exact ride for the market and (our current trade) but don’t flinch!” (END)
The Dow is up a whopping 172 points, or 1.6%, and is at 11,180. We would love to see the index trade and close above 11,200 which would be a clear sign that our charts are leading us in the right direction. The index has traded to a high of 11,199. We have mentioned how the market would test support after breaking resistance so nothing has changed on the road map. We still expect a push towards Dow 11,600 and with Ireland thisclose to accepting a bailout, the clouds are clearing and the uncertainty is lifting which is good for the market.
The S&P 500 is showing a 20 point pop and is at 1,198 and a stone’s throw from clearing 1,200. The index has kissed 1,199 and a close above this level would be golden.
The Nasdaq is on fire and is pushing higher by 45 points to 2,520. Back above 2,500, sweet.
As David Essex would say…”Hey, bulls…rock-in-roll..rock on…oh, my soul. Hey kids…”
You get the picture. We are rocking today. Subscribers, check the Members Area for the updates.