4,240.
That’s the halfway point between the Weak and Strong Bounce Lines on the S&P 500 and it’s also up almost exactly 2.5% from where we started the week and USUALLY, it’s a big deal for a major index to move 2.5% in a week but not in these crazy times – we just take it all in stride.
We took advantage of yesterday’s little pullback to identify a bunch of new bargain stocks to trade including MP, JWN, BNTX, BGFV, CONN, CTRN, DKS… If you want the full list and suggestions for options trades, don’t be a cheapskate and Become a Member Now!
We expect to finish the week on a high note and hit our goal because we have Consumer Sentiment at 10 am and last month I called it a low at 51.5 because it’s based on lagging data and Gasoline prices had been coming down fast from June to July – which has a heavy impact on Consumer Sentiment.
See how easy it is to predict the Future – you just have to pay attention to the present…
After much hemming and hawing, we decided NOT to tilt more bearish into the weekend. We feel we are protected enough from a big drop (if Putin blows something up) while the other risk factors should allow us one more week of positive movement before the momentum we’re now enjoying becomes exhausted.
Technically, you can call the run from 3,680 to 4,240 (15%) a bull rally and I’m sure the MSM will conveniently forget that we started at 4,800 and we still have EXACTLY another 560 points to go to get back there. See how symetrical the 5% Rule is? And those are the lines we’ve been using all year to very accurately predict EXACTLY what happened so far.
It’s much EASIER to play the market when you know what is going to happen next and what we do at PSW is try to make sense of what’s happening now, remember what happened in the past and use that KNOWLEDGE to stay on top of the changes that lie ahead.
We’ll see how we’re doing after the 10 am sentiment release.
Have a great weekend,
– Phil
