Market Overview

The Market Appears Bound And Determined To Rally

I sat at my trading turret all day with my trigger finger ready to start deploying trades but the Market seems determined to go higher. That isn't a bad thing but considering the circumstances surrounding the Market, my analysis dictates it prudent to wait. As you all know I do not chase markets or trades but instead wait for an opportunistic entry.
 
Heading into Thursday's Jobless Claims, ADP, and ISM followed up by Friday's Payroll Report and Unemployment Rate, the market has been acting extremely strong (see the Trading Calendar for a list of upcoming events). Wednesday markets recovered early losses to close in the green with financials trading solidly again. There is a lot of enthusiasm in the markets and new money going to work due to the calendar changing.
 
Many eyes are on the upcoming data points through the end of the week and some solid reports could propel the Market higher. The Market is already overbought and forming an ascending triangle pattern on the charts. Money is flowing, enthusiasm is high, and my analysis indicates a break higher. I plan to use any upside pop to issue credit spreads as the S&P needs to pull back and test the 200DMA at ~1260 to work off some of the overbought condition.
 
I am a little leery getting too long here with debit spreads so I will wait for some pullbacks to jump into those. Be patient and don't rush into a trade here as the market is still getting wound back up from the Holidays. Remember: Sometimes the best trade is the one you didn't make.
 
Navigate wisely and stay profitable, my friends. Happy trading!
+72.33% 2011 BookingAlpha Monthly Advisory
+42.22% 2011 BookingAlpha Weekly Advisory
vs.
-0.01% 2011 S&P 500

Posted-In: Global Markets General

 

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