What a start to the week it’s been for the markets…
On TBUZ TV this morning, I talked about how good of a day Monday was. And I made that comment that, if only every day could be like Monday. Well, so far Tuesday has asked that you kindly hold its beer.
Meanwhile, the Dow has soared past 30,000 for the first time ever. That’s good news for today, and perhaps the rest of the week…
Will we see markets keep soaring higher, every single day?
As traders, we of course know that’s just not how the markets behave. It’s not wise to try to read too far into the future based on what the market does in a single day or even a couple of days. We have to keep following the trends and taking it a day at a time.
I’ve been talking the past couple of weeks about the phase of a market meltdown. The first phase is what I call the ‘sugar high’. The markets fly to crazy, crazy highs. What comes next? Well, that’s when the markets start to dive.
If you get caught up in the sugar high, you put yourself at risk for making a greedy or careless mistake. No matter what happens, you have to always stick to a plan. Every. Single. Day.
Support, Pivot, and Upside Target
For days like today and Monday, it’s important to keep our heads and not get caught up in the sugar high. The best way to do that is to stick to a plan. I usually do that by keeping just a few numbers in mind for the S&P 500.
Here are the numbers I’ve been paying attention to at the start of this week:
Support: 3562
Pivot: 3585
Upside target / new high over last week: 3645
I want to stress that these are the numbers that we’ve been keeping our eyes on through Tuesday. With the way the markets have been going this week, I could very well be sharing new numbers with my TBUZ TV subscribers tomorrow morning, bright and early.
My Favorite Stocks This Week
My TBUZ TV subscribers also know the two ticker symbols I told them to pay attention to this week. I’m still feeling very good about those right now.
(If you are interested in getting my TBUZ TV updates in your email inbox every day, follow this link here.)
We’re going to keep following those tickers, but stick to our plan as always.
The week has started great. Who would have thought we’d see the Dow cross 30,000 for the first time ever? A lot of people though that was a sacred number that would never be touched…
But, please: Don’t get too caught up in everything. Stay with the trends. Stick with your plans.
And like I always say…
I’ll see you on the flipside,
Tom