The bulls have managed to start the week off with a bang following good news from across the pond. Futures were strong throughout the night and into this morning after the leaders of Germany and France got together over the weekend.
We mentioned last week the “relief rally, “dead cat bounce”, or whatever the bears are calling it had a good chance to continue into this week and while the news is good, the major indexes are still in a trading range. However, it is our belief the longer we stay in this range, the bigger the breakout (or breakdown) will be.
This week also kicks-off the third quarter earnings season and we will cover much of the action in our trading video later on tonight. Although there has been talk of the possibility of a double dip recession or continued sluggish growth, we think profits will generally be ahead of Wall Street’s expectations. (Note: If you are seriously interested in learning how to trade options and how to find you own trades, remember, the course is available to you at no charge (an $895 value) if you order a 1-year membership to our Daily newsletter.
We have a lot to cover inside our Members Area so we are going to be a little short with the afternoon update. After closing a slew of triple-digit winners last week, we have another one rapidly approaching a 100% return. Our NEW TRADE from this morning is already showing a nice pop as well.
As we head to press, the Dow is up 271 points to 11,374 while the S&P 500 is showing a gain of 33 points to 1,188. The Nasdaq is advancing 75 points to 2,554. Subscribers, check for the updates and pay attention to the stops we have in place to protect profits.