Get Ready For A Big Rally This Week – Watch the Video
POSTED BY PETE STOLCERS ON FEBRUARY 12
I’m going to keep today’s comments short and sweet. If you followed my comments last week and you watched the video, you know how I feel. Get ready to make a lot of money this week.
Interest rates are at historic lows and the Fed said it does not plan to ramp up tightening just because the 2% inflation target was reached.
Corporate profits are robust and earnings are expected to grow 17% this year. Guidance is fantastic and the S&P 500 is trading at a reasonable forward P/E of 16.5.
Economic growth will hit its highest level in two decades. The Atlanta Federal Reserve is projecting 5.3% GDP growth in Q1.
Rocket man will behave until the Olympics are over.
Politicians “kicked the can” and we won’t have to worry about the debt ceiling for a year or budget for two years.
Bullish speculators needed to be flushed out. The drop was much more pronounced than I expected and it was exacerbated by trading programs. Those same trading programs will fuel the rebound.
Swing traders should be long calls. I told you Friday that I would buy the SPY if it reached the 200-day moving average and it did. The capitulation low has been established and we will see very bullish price action the whole week. I am expecting us to close above the 100-Day MA and to retest it. When it holds we will see the next leg higher. After a successful retest in the next 2 weeks I will raise my stop to the 100-day MA. For now, I am holding my position with a stop at the 200-day MA. I want to give the market lots of room.
Day traders need to focus on the long side. Buy any dip. Personally I will NOT be day trading. I am loaded up and I am holding onto my long swing trades. We will see overnight gaps higher and that is when most of the money will be made.
I told you a couple of weeks ago that I would get more aggressive on a pullback. We got one and we pounced on it. Get ready for a fantastic week.
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