Listen to Dave on tastytrade at the 121:15 minute mark: https://www.tastytrade.com/#/
Read my post below about the 1,363 SPX price target and let us know what you think?
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The paper trades that I did on Monday on X, VMW, RAX and JOYG are wildly successful. Yes I did close the X puts sold Monday just after the open at .59, .56 and .55 for 2 cents today with a gain of 53 to 57 cents and approximately a 10% ROC for two days and two hours.
The ANR and RCL paper trades placed Monday night filled on Tuesday and are doing extremely well. The other symbols AKAM, FFIV, CTXS, JOYG, ADSK, DECK and TSLA that I encouraged you to paper trade are also making strong gains.
All nine sectors moved higher on Wednesday. XLF +6.17%, XLB +5.73% and XLE +5.51% were the strongest sectors.
SPY volume jumped 51% trading 300.7 million shares.
Read my post below about the 1,363 SPX price target and let us know what you think?
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The SPX, INDU and RUT each went One Green Arrow and 3 Green Arrows on Wednesday. Thirty-five NDX stocks and 25 stocks from our 30 DMA watch list also went One Green Arrow crossing above their 30 DMA. The COMPQ and NDX closed just below their 30 DMA.
The paper trades that I did on Monday on X, VMW, RAX and JOYG are wildly successful. Yes I did close the X puts sold Monday just after the open at .59, .56 and .55 for 2 cents today with a gain of 53 to 57 cents and approximately a 10% ROC for two days and two hours.
The ANR and RCL paper trades placed Monday night filled on Tuesday and are doing extremely well. The other symbols AKAM, FFIV, CTXS, JOYG, ADSK, DECK and TSLA that I encouraged you to paper trade are also making strong gains.
All nine sectors moved higher on Wednesday. XLF +6.17%, XLB +5.73% and XLE +5.51% were the strongest sectors.
If news really is the primary driver of stock prices, how is it that Financials XLF has one of its biggest moves in 2011 the day after S&P lowered credit ratings on 15 global banks including JPM, BAC, C, WFC, GS and MS?
You might remember that Treasury securities also had a big jump when the U.S.
The Euro was up 133 pips to 1.3447 at 5pm EDT on Wednesday. TNX was up +0.38 to 20.68. TLT was down -$1.87. Financials XLF was up 74 cents.
The broad indexes crashed to the upside continuing Monday’s strong support bounce crashing through their 10 DMA and 30DMA with the RUT +5.94% , SPX +4.33%, INDU +4.24%, COMPQ +4.17% and NDX +3.79%. The SPX moved up +51.77 to close at 1,246.96.
(click image to enlarge)
The VIX moved down -2.84 to 27.80 its lowest close since Oct 28 at 24.53.
AAPL, AMZN, BIDU, GOOG, PCLN and QCOM moved higher on Wednesday.
Breadth strengthened as advancers led decliners 6.87 to 1 on the NYSE and 4.62 to 1 on the NASDAQ.
Exchange NYSE NASDAQ
Advancers 2,707 2,148
Decliners 394 464
Leading stocks > +2% on Wednesday PCX, FAS, TSL, X, ANR, AKS, SWKS, LNKD, RCL, ENTR, ATI, MCP, HAL, KKD, URE, GRPN, FFIV, JNPR, WLT, C, CDE, FCX, CAT, GS, DOW, VECO, CLF, JDSU, ARUN, BAC, ZION, SLW, A, CRM, STI, LVS, SLB, SNDK, RVBD, F, ZAGG, WDC, SMH, CIEN, SINA, MOS, CRUS, VMW, NTES, NDAQ, NVDA, LDK, INFA, DE, SWK, V, UNP, GES, COH, DHR, IBM, HUM, DECK, ICE, CHL, TPX, TBT, TSLA, SWN, CREE, SOHU, CMG, CROX, HLF, POT, ANR, ESI
Losing stocks < -2.0% included FAZ, CF
NDX 100 stocks stronger than the NDX included JOYG, WYNN, FFIV, FSLR, ADSK, FLEX, ALTR, LRCX, CTXS, GMCR, MRVL, ERTS, XRAY, SNDK and KLAC.
Stocks weaker than the NDX include NFLX, VMED, ROST and YHOO.
Ninety seven of the NDX 100 rose on Wednesday.
Thirty-five NDX stocks including ADP, ADSK, ALTR, ALXN, AMGN, BIIB, CSCO, CTXS, DELL, DTV, ESRX, EXPE, FISV, FLIR, FSLR, GOOG, INTC, INTU, ISRG, JOYG, KLAC, MCHP, MXIM, MRVL, NWSA, PAYX, QCOM SBUX, SIRI, SIAL,SRCL, URBN, WYNN, XLNX and XRAY closed above the 30 DMA making 50 NDX stocks above the 30 DMA.
Stocks to Watch on Thursday
Holding Above 30 DMA = 14
TSLA, NGLS, UCO, TLT, DLR, CDE , DE
Moving Above 30 DMA = 25
A, AKS, ANR, ATI, CAT, CHL, CLF, COH, CRUS, DECK, DHR, DOW, FCX, HAL, IBM, KKD, LDK, LVS, NDAQ, RCL, SLB, SLW, SWK, TSL, X
Moving Below 30 DMA = 1
FAZ
Staying Below 30 DMA
GLW, INFA, NTES, RVBD, TIF CIEN, JDSU, JNPR, SNDK, VMW, ARUN, CF, CREE, CRM, SMH, SWN, URE, WLT, CMG, HLF, ICE, MOS, PCX, TPX, C, GES, VECO, ENTR, FAS, GS, SOHU, STI, ZION, MCP, BAC, F, CSTR, IL, POT, SINA, SWKS, ZAGG, LNKD, ANF, ESI, TBT, UAL, CROX, GRPN
Eight Week Intermediate Term Market Trend: Up
Short Term Market Trend: Up
9 comments:
Entirely feasible target.
Feels like the markets were just waiting for some catalyst/excuse to swing higher; the central banks happened to be that catalyst....
or am I just being a simpleton and wishing the market higher?!
I too am prepared for pullbacks in the next while or so in hopes for more entry opps.
Francis
Vancouver
Dave,
Your forecast scared the hell out of me because it was going the other way, so I folded and sold. My big big mistake. Trading too large and got spooked out of positions. Should have believed you and Tom more. But that 2% odds of a sell off drove me out.
I am now back on track, trading smaller and more trusting in your analysis.
Thank you.
Yea, but just as possible that it drops straight down 200 points from here. Total gamble. Nothing but gaps up. Intraday move was next to nada. Good luck, I enjoy reading you.
Francis,
There will be pullbacks the only question in at what level. After a very strong day not uncommon to have a slight pause.
Dave
Anonymous #1,
Glad you're back on track. Follow your rules.
Dave
Anonymous #2,
Thank you for your observation and 34 years of real world experience has taught me it's not a gamble at all, meaning random negative edge or gambling from the casino customer's point of view.
Intelligent rule based disciplined trading is like running a casino, the owner has a positive mathmatical edge.
Anything is possible, but all outcomes are not equally probable.
Luck is NOT a trading strategy.
Best of Success,
Dave
Dave,
Great answer to Anon #2.
With your guidance I am getting better. Thank you
Paula
I think it's possible to hit that target based on the price chart and especially with the volume yesterday. I'm very glad I attended the marathon trading room on Monday and listened to what you had to say....
Good luck trading.
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