Stock Market Aims for New All-Time Highs 4.1.19

SPY ETF Chart 4.1.19

SPY ETF Chart 4.1.19

The stock market and the SPY ETF paused at the $280 level for the week and traded into an inside candlestick breakout.

 We’re looking at minor resistance at $284 then a clear run to the all-time highs near $292.

If you’re a loyal reader of the blog you know I’m a big fan of inside day breakouts. The simple setup typically leads to multiple trend days, and closes near the high. As long as the SPY ETF remains “well-bid” I will remain aggressively long.

“Aggressively” means larger share size, multiple positions and less active trading. When things line up you must get paid. You can’t dip your toes in the water, it’s imperative you trade with conviction.

Look for strong sectors and strong stocks and get involved. Do not buy beaten down stocks. They traded lower for a reason.

Could this game plan fail? No, and here’s why.

We can’t do anything about follow through. We can only control when and how we get involved. If you game plan based on order flow and it’s solid, trade it with conviction. With confidence.

Trade to get a head start. Initiate trades with the goal of “letting them prove themselves.” Ditch the losers and add to the winners.

Stop trying to be “right.” Start acting like a trader.

Dow Jones Futures Rally On Strong China Data; Four Reasons To Be Bullish

Dow Jones futures rose solidly early Monday morning, along with S&P 500 futures and Nasdaq futures, amid upbeat Chinese economic data.

The current stock market rally showed encouraging action last week. While the stock market rally is still under pressure, there are good reasons to be bullish.

The biggest question for the market entering the second quarter: Recession or just a soft patch?

Hearing the superlatives applied to Wall Street’s fast start — the S&P 500 up 13 percent, its best first quarter in 21 years — might leave the impression the bulls have routed the doubters decisively.

But it’s closer to the truth to say that for two months bulls rebounded from the devastating loss suffered at the end of 2018 by building up a nice 12-percent lead, and then for the past few weeks the defense has held off the bears to preserve it.

Brexit’s Message To The European Union

With the Brexit saga’s denouement still uncertain, the European Union would do well to re-examine its performance as a daring experience in socio-political engineering on a grand scale.

Even if, as expected, the United Kingdom somehow manages to fudge Brexit and remain tied to the EU, the fact remains that millions of Brits and other Europeans are unhappy with aspects of the experience.

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