9:05am (EST)
The market continued its winning ways on Tuesday as the Dow added its second straight triple-digit gain as the index tacked on 111 points to close at 10,296. Yesterday’s strength was due to another strong round of solid earnings and some uplifting economic news.
The S&P 500 made it back over 1,100 as it added 14 points, or 1.3%, to close at 1,103. The Nasdaq which has been was hit the hardest over the past few weeks joined the bulls party and advanced 19 points, or 0.9% to settle at 2,190.
All three of the major indexes continue to trade right at their key 10 and 20-day moving averages and the past few weeks have been tough for the bulls. It’s still too early to tell but the recent 5% dip may have been another buying opportunity for them and they are making a go of it.
No one really knows what the market will do and all we can do is wait for a clear breakout. The longer we stay in this trading range the move higher or lower will likely be pretty significant.
It has been tempting to start nibbling on some inexpensive call options but we have already profiled a few option trades that go out until April, May, June and September.
Futures were pointing towards a higher open this morning but turned negative after the ADP national employment report showed the private sector shed fewer jobs than expected in January.
As a result, Dow futures are off by 20 points, while the S&P 500 and Nasdaq 100 futures are down by 4 points.
We have included some charts this morning with the current trades to give you a better picture of what we are seeing. Some of you may not have received the charts in email format so please check the Members Area this morning as we get them posted shortly.
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