The bulls are making another push towards fresh highs as all of the major indexes are now positive for the year – minus the Dow. Along with the Financial stocks, the blue-chips have struggled to keep pace with the rest of the market and are still 188 (16,576) points away from breaking even. It will be important they play catch up as the bulls will need their help to keep their momentum.
We have talked about a continued run higher into March but we warned yesterday the month has been very volatile in recent years. We can’t wait as we are looking forward to a continued breakout or a back test that could get serious if support levels fail to hold.
We have done well navigating February as also said it would be a tricky month to trade. We bought some insurance at the beginning of the month that could help us in March but overall we are still favoring call options over put options. However, we also realize it is imperative we lock-in gains when we can to protect profits because the bears have proven they can strike quickly and from anywhere.
Our homework and chart work have really helped us navigate this market as more and more slick talking pros have called for a correction while we have said to stay long. We are still hopeful our December fluff targets trigger and last weekend we released our yearend targets for 2014.
We have been incredibly accurate in calling and predicting in February where the market will be in December for the past two years. We surprised everyone last year when we predicted a 3,000 point gain and Dow 16,000 last year and were likely the only option newsletter we know of that made this bold prediction.
We also have great expectations this year if major support levels hold and if we are right, we should have another banner year. This is our 7th-year in publication and we have NEVER had a losing year. We say this because making money in 2008 in a down market when Wall Street was wining is a big deal. We TEACH you how to play market selloffs and corrections and although it remains to be seen if there will be one in 2014, we can prepare you for one.
We can also prepare you for incredible gains if the market continues setting record highs but it is imperative you learn how to play both sides of the market when the music stops. When the musical chairs stop and investors start fighting for chairs, we will have you sitting pretty.
We have a ton to talk about this weekend, including why and how we arrived at our yearend targets for the indexes, and what the near-term outlook holds.
As we make the turn, the Dow is advancing 116 points to 16,388 while the S&P 500 is higher by 13 points to 1,867. The Nasdaq is up 16 points to 4,335 while the Russell 2000 is gaining 3 points to 1,191. The VIX is at 13.61, down 0.43.
We have action to take as we have a trade that is up 80% in 24 hours. We mentioned yesterday the trade would be short in nature so let’s go ring the register on at least HALF of the trade.
We will be back Sunday night with the Weekly Wrap and Monday morning with the Daily. Until then, have a great weekend everyone!