It may have seemed like a long wait but now that the S&P has tagged 1,700 the wait is over. We said this morning we could get a break out of the 2-week trading range as futures were showing a strong open and the run past 1,700 also represents a great call we made at the beginning of the year.
For those of you just joining us, we do our yearend price targets for the major indexes at the end of January every year and we “surprised” a lot of people when we said the S&P would zoom another 200 points from 1,500 to 1,700 following January’s strong gains. Now what?
Well, we said back in May that we don’t raise or lower our price targets throughout the year like other bandwagon (or ship jumping) Wall Street pros do because it makes no sense. A yearend projection is a yearend projection and you can’t change it based on what the market is doing 5 months before the year ends. You are either right or wrong and while we could be “wrong” if the market continues to surge past our yearend targets, we have been “right” on predicting where the market is headed week after week and that is our main focus.
We predicted the recent trading range and a continued run to new highs in July and we will have to check the charts over the weekend but today’s breakout could mean another 2 weeks of higher prices through mid-August.
The Dow is currently up 123 points to 15,622 and a close above 15,600 is crucial as we have seen the blue-chips fail at this level over the past couple of weeks. The S&P 500 is higher by 17 points to 1,703 and a close above 1,700 would be very bullish. The Nasdaq is surging 38 points to 3,664 while the Russell 2000 is advancing 12 points to 1,057 and is back over 1,050.
We have some nice pin action today on a few of our trades as one of them is up 93%. We are ringing the register on HALF of the trade to lock-in profits but we will keep the other half open (along with our September calls that are up 54%) to play a continued upside move. Subscribers, check the Members Area for the updates and stay locked-and-loaded as we may pick some more low hanging fruit.