Breakout Day... As Expected!
The US market staged an impressive breakout today on much better than expected Jobless Claims report and as correctly predicted by the double dragon formation two days ago! My stock options picks subscribers, profited from today's breakout, did you?
What I like about this break out is that it is not overdone, bond yields did go down as investors return to equities but not too much, put call ratio remained below par in favor of call options trading but did not dive. When its not overdone, it can last, thats how the stock market works.
Tomorrow is Quadruple Witching Friday, something that happens only once in a quarter (read more about what Quadruple Witching is) and typically a day of very high trading volume, intraday movement but very little end result. This is definitely a good place to take some short term profit coming from this three day rally.
So, some of you are asking me, what about the 2125 resistance level? Well, my mentor used to tell me, there's no such thing as a triple top. When the market tests a ceiling for a third time, it usually means its ready to break it. With all of the above indications and how the short term stochastics are still way off from overbought levels, I would expect next week to be a nice positive week as well, so I won't be too hurried to close my bullish positions.
For now, the US market turns short term bull trend within an intermediate and primary bull trend.
What I like about this break out is that it is not overdone, bond yields did go down as investors return to equities but not too much, put call ratio remained below par in favor of call options trading but did not dive. When its not overdone, it can last, thats how the stock market works.
Tomorrow is Quadruple Witching Friday, something that happens only once in a quarter (read more about what Quadruple Witching is) and typically a day of very high trading volume, intraday movement but very little end result. This is definitely a good place to take some short term profit coming from this three day rally.
So, some of you are asking me, what about the 2125 resistance level? Well, my mentor used to tell me, there's no such thing as a triple top. When the market tests a ceiling for a third time, it usually means its ready to break it. With all of the above indications and how the short term stochastics are still way off from overbought levels, I would expect next week to be a nice positive week as well, so I won't be too hurried to close my bullish positions.
For now, the US market turns short term bull trend within an intermediate and primary bull trend.
posted by Jason Ng at 7:46 PM
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