9:00am (EST)
The bulls continued their winning ways on Thursday after pushing the market higher for the third day in-a-row and closer to another break past resistance.
The Dow gained 62 points, or 0.5%, to finish at 12,169. The index fell just short of our 12,200 target after hitting a high of 12,182 but stayed green from start to close.
The S&P 500 popped higher by 10 points, or 0.8%, to end the session at 1,254. We were rooting for a close above 1,250 and as long as this level holds today, there is a good chance for a year-end rally up to 1,275-1,300.
The Nasdaq added 21 points, or 0.8%, following Wednesday’s pullback, and settled at 2,599.45. Tech was within spitting distance of finishing above the 2,600 mark but still managed to go out near its highs.
Futures are up this morning on news the Keystone Kops in DC came to a short-term agreement over the tax cuts which were extended for 2 months. This is the political gridlock we have come to expect from these know-it-all’s but at least they got something done, right?
Boehner bit the bullet and gave in to Obama and now a “committee” will be formed to see if the two sides of our government can nail down a 1-year extension when the crew gets back in January. Sounds like more taxpayer money keeping more politicians employed for doing nothing. What ever happened to the slogan “United we Stand, Divided we fall”?
We told you last week with the Wall Street “pros” away on Christmas vacation they could miss something special. Monday also scared a lot of rookies out of the market but we gave you key levels of support to watch for which held.
Although the Dow is up for the year, the blue-chips are only up 125 points, or 1% for the month. The S&P 500 is still showing a loss for the year and will need to clear 1,258 to turn green. The Nasdaq is still down a little over 50 points YTD and 20 for the month.
We said last week to look for a yearend rally but we are seeing some incredible bullish charts across the board that is pointing towards a possible explosive move in 2012. We hope to have a video ready for you by Monday night for those of you who have our trading course manual, How to Trade Options on Momentum Stocks. More on this in our afternoon update.
As we head to press, Dow futures are up 30 points to 12,133 while the S&P 500 futures are higher by 4 points to 1,253. Nasdaq 100 futures are showing a 6 point pop and are at 2,266.
We have a potential busy morning as our Members Area is packed with possible NEW TRADES that are on our Watch List. Some of them could become official recommendations so stay lock-and-loaded for Trade Alerts shortly after the open if we decide to take action.
