All major U.S. markets popped after President Trump’s speech to the joint chambers of Congress.  The Dow broke above 21K, and the S&P 500 eclipsed the 2400 level for the first time.  This came one day after the longest consecutive winning streak in 30 years in the Dow was broken.  Another price action of note is that most of the trading days recently have been less than 1% daily moves, until yesterday.


Interestingly, the rally has been occurring with few sectors in a bull market.  Financials and technology have remained strong, and healthcare seems to be emerging.  “Safe” sectors such as consumer staples and utilities have been erratic, and energy has been the weakest. Overall near term and intermediate term market sentiment remains bullish, as annual seasonality suggests we can stay that way at least until May.  Options traders have been winning big in this environment.  To learn more, go here:

The CBOE Volatility Index (VIX) has remained at incredibly low levels for over three months.  It sits at 12.5 currently, but with the prospects for a rate hike in March increasing on strong economic news, many analysts are predicting an increase in volatility, and such changes can happen rapidly, leading to huge profit opportunities. Did you know that you can trade options on volatility?  To learn more, click here:


OVERSEAS:  No major moves occurred in overnight action in foreign markets.  Asia was mixed with the Nikkei trading up slightly, and showing strength compared to the Chinese markets.  Confidence is high that President Trump will successfully gain new trade deals with key partners such as China that will work more to the benefit of the U.S.  European markets were mostly up, but very flat.  In short, no major game changing moves that are likely to have an impact on the U.S. trading day.

OIL:  Oil prices have stabilized in the $53 to $54 price per barrel narrow range.  Crude inventories remain very high, but the pace of growth has slowed, and gasoline inventories have decreased slightly this week, leading to a mixed report and very little movement.  Want to learn from a commodities expert what will happen next?  To hear what Courtney Smith has to say about oil and other opportunities, click here:

JOBS:  Jobless claims continue to surprise in a positive way coming in at only 223K this week compared to an expectation of 245K, and 19K fewer than the previous week.  Personal incomes have also improved along with many other recent economic indicators that suggest a brightening economic outlook.

BIOTECH INSIDER: It would seem Wall Street is finally waking back up to the biotech and pharmaceutical boom we’ve been screaming about for years.  After a painstaking mess in 2016, the sector is back with 80 million baby boomers, millions of newly insured Americans, new innovation, and explosive merger and acquisition news leading the way.  Now, it would seem the Big Boys are waking back up to that momentum, too, as the iShares NASDAQ Biotech ETF (IBB) and SPDR S&P Biotech ETF (XBI) log their fourth consecutive week of gains.  “I think you want to own the smaller to mid-cap stocks in the group, which are actually showing some more relative strength here,” noted Ari Wald at Oppenheimer, as quoted by CNBC.  While many analysts are late to the game, it’s just nice they’re waking up to the trades we’ve bullish on for 20 years.  To learn more about how to trade the sector for up to 85% success as our biotech expert has seen over the last five years, click here:

MOMENTUM INSIDER: For an example of the quick gains we’ve had after momentum, take a quick look at Gigamon (GIMO).  After falling on earnings, shares of GIMO became incredibly undervalued on our momentum indicators.  We traded two CALL options, the GIMO April 2017 35 calls soared from a low of $1.90 to $3.20, and the GIMO March 35 calls jumped from $1.25 to $2.35.  Those are the kinds of gains we’re after in as little as a week.

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