The bulls got back-to-back wins, technically, as the market moved higher on Wednesday following the good news from Apple (AAPL, $610, up $49.72) which lifted Tech more than 2% for the session. Like a broken record, the Fed did its part by making no changes to interest rates and saying it will do what is necessary to keep the economy afloat.
Ben Bernanke did not waver in his words with the press and said the Fed “would not hesitate” to launch another bond buying program to lower borrowing costs, if needed. The market got another shot in the arm on those words and finished near its highs for the day.
The Dow gained 89 points, or 0.7%, to close at 13,090. The blue-chips reached a high of 13,105 but never really came close to challenging the 13,200 level which has been strong resistance in recent weeks.
The S&P 500 advanced 19 points, or 1.4%, to settle at 1,390. The index traded up to 1,391 but also fell short of challenging resistance at 1,400. If the bulls cannot clear this level by Friday’s close, the trend is still lower.
The Nasdaq soared 68 points, or 2.3%, to end at 3,029. Tech reached a peak of 3,031 but the Apple (AAPL, $610.62, up $50.34) news wasn’t enough to get past 3,050. We were looking for a finish below 3,025 and anything below 3,000 by Friday’s close would be beautiful going into next week.
We knew there was a good chance the bulls would make a run at resistance but we feel like they just don’t have enough reinforcements to get past resistance.
We have added some new candidates to our Watch List and hopefully we get some pin action today, meaning, we hope to ring the register. We have a couple of trades that are doing really well and the May options still have 3 weeks before they expire. However, we need to take profits when we can as we start getting to our next batch of trades.
We also said we are starting to look at some Juicy June options because we believe the market could be entering one of the best times of the year to trade. We have had an incredible first 4 months as our 2012 Track Record is showing some of the most powerful option trading returns in the business. We are 74-18 to start the year for an 80% win rate, including an American Express call option trade that returned 475% during March’s Madness in just 16 days.
The next 3 months could be just as good.
As we head to press, futures look like this: Dow (-27); S&P 500 (-4), Nasdaq 100 (-5).