MomentumOptionsTrading.com Midday Update for 4/22/14
Dow, S&P 500 Turn Positive for April/ New Trade
The bulls are pushing and clearing resistance after a number of positive earnings reports have Wall Street in a good mood. M&A has also picked up in recent weeks which is adding fuel to the fire but nothing is a given until we see how today’s close goes.
There are a number of heavy-hitters reporting their numbers this week and we should have a good clue by Friday if a run to new highs is a real possibility, or, a continued trading range with the chance of another pullback.
We have remained bullish all year long despite the choppiness and volatility but trading ranges are hard to trade if you are on the wrong side. A lot of hedge fund managers went short on last week’s drop but we reminded our readers nothing was broken and to stay long as the most hated rally in history could continue.
As we head into the second half of trading, the Dow is up 67 points to 16,516 while the S&P 500 is gaining 7 points to 1,878. The Nasdaq is higher by 30 points to 4,152 and the Russell 2000 is popping a 8 ticks to 1,150.
We are in the process of building out our next batch of trades and we can be a little aggressive given the gains we have made this year. With that said, we have a New Trade on a stock that has been a favorite of ours for years. Shares have been beaten up but we believe a run to fresh 52-week peaks is on the horizon.
Subscribers, check the Members Area for the New Trade and current updates. We could have additional updates today so stay locked-and-loaded into the close in case we take action.