Air Strikes In Syria Not A Concern – Market Will Recover Quickly Today
POSTED BY PETE STOLCERS ON APRIL 11
Yesterday stocks rallied, but the action was very tenuous. Without question there are buyers and sellers. On every rip we would see a quick retreat and on every dip we would see support. The futures are down overnight on concerns that the US will get more involved in Syria. I will be buying on support today.
The market has been able to fend off the threat of a trade war and heated rhetoric between China and the US. That tone has been much more conciliatory. A possible trade war is a much bigger market threat than airstrikes in Syria and I see this dip as a buying opportunity.
The S&P 500 is compressing above its 200-day moving average. Profits will calm nerves and they are expected to rise 18% this quarter. Major banks will post earnings Friday.
Economic data has been strong and inflation is moderate.
Swing traders should be long XLF. Use the 200-day moving average as your stop. Buy XLE on the open today. Energy stocks are starting to catch a bid and oil is moving higher. Use the 200-day moving average as a stop on a closing basis. I am favoring ETFs because these companies will be reporting earnings and I don’t hold individual stocks over the number.
Day traders should let the market come in. Look for support in the first hour of trading and look for opportunities to get long. I like the energy sector and I like financials.
The overnight news is that that dire. This is a nice little buying opportunity ahead of earning season. I am just looking for a market bounce during the next few weeks. Keep your size relatively small and know that there will be volatility.
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