The bulls continued their winning ways on Monday following better-than-expected manufacturing data out of China and continued enthusiasm that the European Union (EU) will soon have “plan” in place over the next few days.
Meanwhile, stronger-than-expected earnings here at home provided even more strength as the market pushed its early August highs.
The Dow gained 104 points, or 0.9%, to finish at 11,913. The index traded to a high of 11,940 but was unable to kiss the 12,000 level despite Caterpillar’s (CAT, $91.77, up $4.38) earnings beat.
The S&P 500 added 16 points, or 1.3%, to settle at 1,254. We were looking for a close above 1,250 which was the first time the index has closed above this mark since August 3rd. The next area of resistance comes in at 1,275.
The Nasdaq surged 62 points, or a whopping 2.4%, to close at 2,699. We said in the Weekly Wrap and on Monday morning to look for a run to 2,700 but we didn’t think we would get it all in one day. Our top-end target for the week is 2,750 so there is still some fluff left to go before we hit resistance. Yesterday’s move pushed the index past its 200-day MA.
Futures are pointing towards a lower open as the Dow futures are down 51 points while the S&P futures are down 5 points to 1,248. The Nasdaq futures are down 6 points to 2,369.
We added two more new trades yesterday and locked-in half profits on another triple-digit winner and we could be busy again today. There are a number of other trades of ours that are showing great gains so we may be locking up profits in a few of them as the market moves higher.
Subscribers, check the Members Area for the updates and be on the lookout for Trade Alerts this morning if we do take action. We will also update Netflix (NFLX, $118.84, up $1.80) today which is getting crushed this morning after lowering estimates going forward. Shares are down $44 to $75 in pre-market action.]]>