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Posted 9:30 AM ET - The market is screaming higher and you should raise your stops. We are up almost 200 S&P points from our entry point last week and I don't want to give it back. Use SPY $271.80 as an intraday stop. The momentum is strong and I don't believe we will be stopped out today. The market momentum is strong and I believe it will sling shot to a new high before this move is over. That might take a couple of months and I believe the March FOMC statement (3/31) will keep the old high in place. …
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Posted 9:30 AM ET - Yesterday the market gave us a big "tell". The appetite for stocks is strong and a hot CPI did not deter buyers. The S&P 500 briefly tested the 100-day moving average and it shot higher. That massive 60 point reversal paved the way for a higher open and the futures are up 11 points (pre-open). When the market moves higher against bearish news it is a very bullish sign. This bounce has a long way to go, enjoy the ride. The CPI was .1% higher than expected. Oil prices have been down and that is the …
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Posted 9:30 AM ET - Yesterday the market tested the 100-day moving average and it bounced. Stocks closed on the high the day and buyers are engaged. This morning the CPI came in a little hot and we will test the 100-day moving average again. The price action today will help us gauge the strength of the bid. Prices rose .5% and that is a little hotter than the .4% that was expected. Core inflation rose .3% and .2% was expected. The Fed has stated that they will not accelerate tightening just because their 2% target was hit. Fear of higher …
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Posted 9:30 AM ET - Friday the S&P 500 tested the 200-day moving average and buyers stepped in. A sharp reversal marked the capitulation low and stocks closed on their high of the day. Yesterday we saw follow-through buying and the S&P 500 was up 35 points. The S&P 500 closed above the 100-day moving average and that is a positive sign. If you watched my video, you know that I expect $263.70 to be tested again on the SPY. We saw some late day selling Monday and follow-through selling this morning. The S&P 500 is down nine points before the …
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Posted 9:30 AM ET - PLEASE CLICK HERE TO WATCH THE VIDEO THAT I POSTED SATURDAY 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 …
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Posted 9:30 AM ET - The market is still probing for support. This bottoming process is going to take time and it will present an excellent buying opportunity. I was stopped out of my long position and I am waiting to reenter. The macro backdrop is very bullish. Valuations are nowhere near "bubble" territory. The S&P 500 is trading at a forward P/E of 16.3 at current levels and it would be below 16 if we test the 200-day moving average. On a historical basis that is a little rich, but not extreme. Earnings on the S&P 500 are expected to …
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Posted 9:30 AM ET - The market is starting to find its footing. It tried to bounce yesterday and late day selling pushed it into negative territory. We can expect a few aftershocks, but a series of higher lows will attract buyers. Stay long. Congress is going to extend the budget by two years and the debt ceiling by one year. It still has to be approved by the House and Paul Ryan has given his approval. The defense sequester will end and this will increase discretionary spending by $500 billion. The market had a negative reaction initially because this spending …
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Posted 9:30 AM ET - The long-awaited 10% correction finally happened. Stocks were technically over-extended and bullish sentiment needed to be tamed. Program trading accelerated the drop and it will facilitate the snapback rally we are going to see. This is an excellent entry point and I would buy the dip this morning and use the 100-day moving average as your stop. The macro backdrop for the market is very bullish. We are in the beginning stages of an economic boom. Interest rates are low, credit concerns are very low and profits are rising. This is the "sweet spot". Fed officials …
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Posted 8:30 AM ET - The market has seen heavy selling the last three days and all of the gains in January have vaporized. We were long overdue for a 10% correction, but there is usually some forewarning. The price action had a liquidation feel to it. This is an excellent entry point. I would not be surprised to hear that a hedge fund is in trouble because of overexposure and margin calls. I would also not be surprised to hear that trading programs were run in error. The speed of this drop reminds me of the flash crash. Janet Yellen …
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