Futures are higher this morning, recovering from yesterdays pull back from record highs. These pull backs remain short lived and until that changes, trading for downside should be a short lived endevour.
S&P500 futures if this downside lasts more than a day please contact your local central banker pic.twitter.com/L7ayV1ml7S
— UPBOptionMil (@UPBOptionMil) January 24, 2018
Here were are this morning with futures nearing new record highs. What a difference a day makes, however let's not be surprised. This is what has been happening on a regular basis.
Earnings are out from some big names like $MMM and $CAT. Both are through to new record highs after their reports.
What does that tell you? That the recent price action to the upside is getting confirmed via earnings. Buying the all time highs continues to work. Trying to trade for a top.... not working so well. Let's stick to what works.
Even some of the massive moves into earnings are still not enough.. Look at $NFLX. The stock was up to record highs into the report and then launched another 10% afterwards. Up Up Up.
$SPY rests within striking range of $300. To think not long ago the $SPY was near $200 amid a limit down overnight session on election night.
Until the tide turns, why fight the trend and momentum?
The $SPY the last 12 months.
The $SPY the last 24 months
I think the market is more apt to take a sideways break than to outright collapse. Which will still offer some very nice trades for upside.
Some of the names I am going to trade for more upside:
$X, $DDD, $MU, and $AAOI.