Morning Thoughts

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.

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.

The Last 4,195 Times This Happened the Market Rallied


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.






Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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