Futures were pointing towards a jailbreak by the bulls this morning and the market is soaring after Europe came through with a “plan”. We knew things could get ugly during yesterday’s EU summit meeting but little did we know punches would be thrown. Of course, tensions build when you put 17 people in a room with the weight of the world, literally, on their shoulders.
We mentioned the talking heads and slick talking Wall Street analysts were calling for a pullback into yesterday’s close but they failed to read the charts and underestimated the wheeling-and-dealing the Europeans are capable of. When push came to shove, the EU leaders worked late into the night and finally came up with a game plan.
To dummy things down, the EU leaders proposed 3 actions and they were: a reduction in Greece’s current debt; a recapitalization of the region’s banks so they can absorb the hit, or losses, from Greece’s bonds; and the reinforcement of the bailout fund which was raised to $1.4 trillion.
Add it all up and you get a huge rally past resistance and a big smile on our faces since we are in a ton of call options.
The Dow is surging 310 points to 12,178 while the S&P 500 is zooming 36 points to 1,277. The Nasdaq has easily cleared 2,700 and is soaring 73 points, to 2,724. The price targets we listed on Sunday night/ Monday morning are in play as our crystal ball continues to nail this market’s pivot points. The S&P Volatility index (VIX, ^VIX, 25.17, down 4.69) is down 15% and we said to look for a drop to 22 once the bulls took out the 30 level.
We have been busy today and we said we would be ringing the register a lot this morning. October has been an incredible month for us but we have been hot since early September and we expect our roll to continue for the rest of the year.
With the market right near our upper-end targets and with the weekend almost upon us, we can’t wait to do the homework to see where this indexes are really headed!
Subscribers, check the Members Area for the updates and stay on the lookout for either new trades or possible profit alerts as this market continues to treat us like gold.