Morning Market Thoughts

by DAN Good morning. The markets are set to open slightly higher today, which is a bit of a victory after yesterday’s across-the-board rally. I’ve been highlighting many volatility squeezes that are working — stocks like GPRO, FIT, CNX, etc. I think these work for short term trades. After these squeezes run their course, will the stocks continue to run? Seems like it to me, but we’ve got to wait and see. No predictions in this space.

I’m watching the financial sector this morning — specifically JPM, GS, MS and C. These stocks were all up quite a bit yesterday, and a follow-through move would be really bullish for the market. Why? Because one axiom of Wall Street is that no sustainable rally can occur without the financials. So if the banks stay strong, stay long. But if the banks peter out, then you might want to be a bit more cautious.

Also, if you haven’t seen last night’s Strategy Session, I did set quite a few video alerts on various stocks. If they hit a critical technical level, you’ll automatically receive that portion of the video where I covered the stock.

It’s important to look ahead when trading. But if you look toooo far ahead, you’ll wind up doing nothing because things will look too murky.

See you in the forum.

Dan

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