That Was Your Chance To Get Long – Ride Your Calls
POSTED BY PETE STOLCERS ON OCTOBER 20
Posted 9:30 AM ET – Stocks are heading higher this morning after hitting a speedbump Thursday. That was the “nasty” day I have been referring to the last two weeks and the damage was contained. That is a bullish sign. Catalonia Spain got the blame, but this was a simple shake out. As stated in my comments yesterday, that was your last chance to get in at a good price. The market made a low in the first 30 minutes and spent the rest of the day grinding higher.
The budget resolution was passed in the House and it should easily get through the Senate. This was a “warm fuzzy” for the market and we are seeing follow-through from yesterday’s reversal.
Earnings season will jump into high gear next week. The results will be excellent and the market will march higher.
Seasonal strength and momentum will fuel the rally.
Swing traders should have a full position of calls. This will be the last decent move of the year. Use SPY $253.50 as a closing stop. We could easily get to $260 by year end.
Day traders had an opportunity to buy the low yesterday morning. That’s all you had to do and there were not many head fakes along the way. I’m not day trading when the market gaps higher, but I do go long futures on weak opens. Bullish markets open lower and close higher. This simple pattern is working now.
Look for choppy action the first hour and a grind higher the rest of the day.
Market commentary provided by OneOption, LLC a firm separate from and not affiliated with Regal Securities L.P. Regal Securities L.P. has not participated in the creation of the content, and does not explicitly or implicitly endorse the content