Good morning, S&P500 futures are higher on the heels of yesterdays strong session. Will the rally off the Christmas lows continue? Or is this really a bull trap?
Bull trap? Yes indeed. It's been a bull trap since the lows in March 2009. And since that time the term bull trap, along with fake, manipulated, rigged, bubble, and about 1,000 other terms have been used to describe a rally that the uber bears have missed out on.
So what if this market is rigged? What if this market has the FED's finger prints all over it? Are we to sell short, trade for a crash because we don't like what the FED is doing? I've said it many times over the years.. the excuses the bears use for why this market will fall are really reasons to buy. I don't think that has changed just yet.
...ok off the soap box... for now....
I think the $SPY has its eyes on that $280 level. Pre-market we are over $272. I am not sure when that $280 is coming, but I think its will be within the next few weeks. SP500 futures also looking for that 2,800 level:
When I was on the audio yesterday in the om room, I noted how the earnings price reaction is speaking a lot louder than the actual earnings reports. Also note today how $GOOGL is lower, yet the entire market is shrugging it off. Much like the reaction after $AMZN reported earnings late last week.
The price action is saying higher. The melt down of the VIX is also saying this market is heading higher.
Momentum remains up, and as I pointed out many weeks ago the $SPY triggered a momentum signal it hasn't seen since the lows in FEB 2016.
As such I remain biased toward more upside for this market.
Some names I am in via calls:
$LGND, $DBX, $IBM, $EBIX, $ABBV, $GILD, $GNC, $SWCH, and $TXMD
The $DBX trade was something I entered based on a very unusual $300,000 $60 call buy.
$IBM was a great earnings trade, and I think there is a lot more upside left to the $150+ area over the short term. I'll have more on these names in the days ahead.
Overall the market, in my opinion, has that bullish feel, with the quick morning downside echoing bullish upside action of years past. Those morning dip buyers, who were on vacation in the Fall and early Winter of 2018, have returned in earnest in 2019.
With that being said... I'll see you later....I'm going to go step in my bull trap. Have a great day.