There have been a lot of suit-and-ties on the tube today crying about today’s rally because they aren’t in it or they were short. The crybabies are saying Ben Bernanke’s comments after the close caught a lot of traders off guard but the truth is his comments on keeping rates low and other taper talk have them running to cover short positions.
We talked about the technical setup yesterday and we mentioned Bernanke would be speaking AFTER the close. We have also said the charts are pointing towards a breakout as long as support holds and for those they don’t do their homework on a Daily and Weekly basis often blame others for their mistakes.
We still don’t know if a double top is forming or if there will be a break to new all-time highs but we should have a better clue from the weekend charts. The current picture is looking like the rally could last into next week and that the S&P and Dow will join the Russell 2000 and Nasdaq in clearing fresh highs.
The Dow is currently up 142 points to 15,434 while the S&P is surging 17 points to 1,670. The Nasdaq is zooming 44 points to 3,565 and the Russell 2000 is at 1,029 – up 9 points.
We have some nice pin action with our current trades and there a few positions we are going to take partial profits in. It is always important to ring the register on big days like today and while we do expect higher prices, we want to be protected in case the rally stalls. And we want to lock-in profits.
We also have a New Trade so let’s get on it. Subscribers, check the Members Area for the updates. We may also have some Trade Alerts/ New Trades for the Weekly so stay locked-and-loaded for the rest of the session!