MomentumOptionsTrading.com Midday Update for 5/27/14
Shorts Run For Cover
For the Wall Street pros that took an early vacation, welcome back.
I often mention the slick talking pros like to take extra days off ahead of holiday weekends and often times they find themselves on the wrong side of a trade once they get back.
The action from last week turned decisively bullish midweek and by Friday, the signs were there that today would be a breakout day.
The bears were hoping the violence in Ukraine would spook Wall Street but Russia is acting the part and trying to defuse the situation following the weekend elections.
While it is too early to chase today, the charts are showing the bulls could rally into mid-June if current support holds. The March fluff targets I have given for the major indexes are back in play and this summer will be crucial in determining if my yearend targets trigger, or not.
Of course, there is a lot of time between now and then but so far the road map has been fairly accurate with all of the major averages coming fairly close to my fluff targets.
The Dow is currently up 62 points to 16,668 while the S&P 500 is higher by 9 points to 1,909. The Nasdaq is surging 35 points to 4,220 and the Russell 2000 is advancing 12 points to 1,138.
Subscribers, check the Members Area for the updates and stay locked-and-loaded into the close for a possible New Trade. There are a few bullish plays I like but I’m still doing the chart work and math to find the best options for us to trade on the breakout to new highs.