Welcome to Week 2 of 2018!

Week 1 of 2018 closed EXACTLY how I predicted it to, strongly to upside!

Even though I continue to maintain my strong positive January 2018 outlook, last week's market action has been so strong that the market is now in a short term overbought condition.

In fact, the S&P500 made its 7th straight positive week last week!

This is something that hadn't happened since 2013! Yes, once in almost half a decade!

Even though this is usually when I call caution and a high probability intermediate pullback, it doesn't seem to be the typical behavior of the market. In fact, it seems like from this point forward, the market tended to put up yet another couple of good weeks as the herd starts getting into the rally late before a pullback happens.

Yes, since you are reading this, you aren't part of the herd anymore. This is when I would like to make very short trades and also to start looking for opportunities to exit my profitable call options positions so far.

This tendency to close another couple of good weeks after 7 positive weeks also means that my prediction for a strong positive January 2018 is still very much on track!

Week 2 of each month is usually digestion week for all the excitement of week 1 when all the heavyweight economic numbers such as the ISM index and the Jobs Reports are released. Last week's numbers didn't quite turn in as well as expected by the market continued to rally all the same, propelled probably by the tail end of the Santa Claus rally or aka January Anomaly aka Window Dressing period as we see investors continue to reallocate from bonds back to equities, raising bond yields across the board.

Even though it is expected to be a largely bullish week, being the first full trading week of 2018, I won't be surprised to see some early profit taking before the bulls take over again.

This strong bullish undercurrent continues to be the engine for January so far and if you don't know how to make really short trades to take advantage of this, you need to join me for just $1 at http://mastersoequity.com and let me tell you what to trade. We had a phenomenal 2017... are you ready to experience a phenomenal 2018 with me?

For now, the market remains in all out bull trend.