Bulls Near Breakout

Bulls Near Breakout

9:00am (EST)

The market ended higher on Tuesday’s shortened session as the bulls pushed our upper end targets and came one step closer to a breakout. Economic news came in better-than-expected for the most part and news from overseas was relatively quiet.

The Dow gained 72 points, or 0.6%, to finish at 12,943. The blue-chips reached a peak of 12,946 and might have reached 13K had Tuesday been a full session. We said at the beginning of the week the bulls could push 13,000 and that 13,200-13,250 would represent a trend change and possible summer rally. They are getting close.

The S&P 500 added 8 points, or 0.6%, to end at 1,374. We have said there could be a back test to 1,375 once 1,350 cleared and the index finished a point below this level. If this area is taken out, we said pencil-in a run to 1,400.

The Nasdaq jumped 25 points, or 0.8%, to settle at 2,976. Tech went out at its high for the day and we said a close above 2,975 might be bullish for a run to 3,000 this week.

One interesting development after the close on Tuesday – Microsoft (MSFT, $30.76, up $0.20) warned they will not meet earnings expectations and we doubt anyone on Wall Street noticed.

We gave you some clues to look for on Tuesday and the major indexes ran right up to our resistance targets.

Futures have traded on both sides of the ledger following this morning’s jobs numbers which we will cover in our afternoon update. As we head to press, futures have now dropped significantly and look like this: Dow (-63); S&P 500 (-6); Nasdaq 100 (-9).

Subscribers,
check the Members Area for the current trade updates.

Comments are closed.

CFTC Disclosure:

GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED IN THE PAST, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH Momentum Options Trading, LLC CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CIRCUMSTANCE. THERE IS SUBSTANTIAL RISK IN TRADING. A LOSS INCURRED IN CONNECTION WITH FUTURES TRADING CAN BE SIGNIFICANT. WE MAKE NO CLAIM REGARDING PAST OR FUTURE PERFORMANCE. WE MERELY TRACK EVERY TRADE AND SHOW THE PERFORMANCE OF ALL TRADES THE SYSTEM OR NEWSLETTER PRODUCES. SIMULATED TRADING IS DIFFERENT THAN TRADING REAL MONEY. HYPOTHETICAL RESULTS ARE NOT REAL RESULTS. PLEASE CONTACT YOUR BROKER ABOUT THE RISK OR TRADING STOCKS, OPTIONS OR FUTURES. ALL COMMUNICATIONS ARE OPINIONS NOT ADVICE.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Blog

CFTC Disclosure: