The bulls are showing some strength to start the week Tech, Healthcare, and Industrial stocks leading the way higher. The Financial stocks are rebounding after a slow start and we talked about these factors this morning for a higher market.
The push higher has gotten the indexes closer to the next wave of resistance and we outlined our “go” targets to add new positions to our portfolio. We still have room for up to 10 new trades but we don’t want to commit new funds until there is a breakout.
The indexes could stay within their current trading ranges from mid-November but we still see a possible breakout occurring before yearend. The price targets we gave were: Dow 13,777.77; S&P 500 1,492; Nasdaq 3,140; and Russell 2000 – 867.
We have done pretty well calling the market’s direction all year long and while we are looking for higher prices for the market, we still realize the bears are capable of pulling the rug from under our feet. The good news is that the move higher over the past few weeks has also given us great clues on where support is coming in at and a break below the downside targets we drew up on the charts will give us the early warning signals.
We like playing both sides of the markets as we are neither bullish or bearish by nature. We like to trade the trends, up or down. A lot of investors get nervous if there is a pending market correction, or if there is a rush to the exits but by keeping both sides of the market in play, you are keeping all of your options open. Our track record over the past 5 years will show incredible triple-digit returns when the market is tanking so keep this in mind down the road if you only buy stocks on the hopes of them going up.
We mention all of this because we have had a busy weekend answering emails with the promotion we ran. For those of you who upgraded, thank you very much, and we plan to work just as hard, if not harder, for you in 2013. We also plan to have a new video for those of you who upgraded to the 1-year deal which included our trading course, How to trade Options on Momentum Stocks, within the next week so that all of you will become familiar with them.
We will have the numbers for the Dow predictions, highest and lowest, and good luck to all of you who entered the contest to win the new iPad. We honestly have to say that the device has been one of the best tools we have bought for the office as we have finally made the move from Windows to the Mac.
We said this morning Apple may be down but they are not out. We are sure Steve Jobs had a detailed plan for his successor, Tim Cook, that covers the next 10 years. We have been all over Apple’s chart for the past few weeks and we may have an upcoming trade once resistance is cleared. While there is still plenty of risk to the downside, we normally shy away from shorting Apple or buying puts because it is such a strong momentum stock and headline driven but a close below $520 would be a warning sign.
As we head to press, the Dow is up 35 points to 13,190 while the S&P 500 is higher by 3 points to 1,421. The Nasdaq is advancing 14 points to 2,991.
We do have a NEW TRADE for you today that we could be a little early on but it was one of biggest winners this year. Subscribers, check the Members Area for the updates and be sure to use limit orders to get the best fills.