The bears are trying to use their Monday magic to slow the bulls momentum but after a quick test to near-term support, the market is bouncing back.
We pulled an all-nighter Friday because we were really curious to see the charts and our follow-up research on Sunday shows a possible 5%-10% market move is coming. The talking heads and Wall Street pros continue to report that this is the most hated rally they have ever seen but our take is they are not in which is why they hate it.
We are still in a tricky market but we showed you on the 10-year charts just how close we are to breaking out to new highs. There are some bearish charts patterns developing as well and the S&P 500 Volatility Index ($VIX, 14.20, up 0.75) is up 6% but there is still a good chance the market prints new highs over the next week or two.
We have a lot to cover so we have to cut things shorts as we have 2 new trades we want to update with our Exit Targets and stops. In fact, one of our trades we just released is up 50% in an hour!
We also have action to take on a few of our Weekly Wrap trades but we are waiting for the options premiums to go up a little before we sell calls against our positions. This will give us more premium which lowers our costs even further on some of our favorite stocks.
As we head to press, the Dow is down 12 points to 13,263 while the S&P 500 is off by 2 points to 1,416. The Nasdaq is lower by 5 points to 3,071.
Subscribers, check the Members Area for our latest comments and we will be back in the morning with our next update.