Put two traders in a room, and one might scream to sell while the other puts in orders to buy. So who’s right? Well, they both could be—depending on the indicators they’re looking at and the kind of trading you want to do.
We’ve rounded up our InvestorPlace advisors to give you their read of this ever-climbing market.
John Jagerson and Wade Hansen, Slingshot Trader
This bullish trend isn’t showing any signs of slowing down. The Fed’s POMO (permanent open market operations) — which we discussed two weeks ago — are still going strong, companies continue to buy back their own stock and investors continue to seek higher yields than they can get in the Treasury market. Until something changes, watch for continued bullishness.
Jon Markman, Trader’s Advantage and CounterPoint Options
One group that has advanced finally, after weakness for a year or two, has been the big energy companies such as ConocoPhillips (COP) and Chevron (CVX). Yet the pace of the advance of the energy stocks has been a bit uneven, as super-giant global energy outfits like ExxonMobil (XOM) and Royal Dutch Shell (RDS.B) have lagged, remaining a touch below highs.
Now I want to advance the thesis that investors will come into these stocks before too much longer. If the global rally is to have any legs, then institutional investors virtually have to circle back and pick up the laggards — especially since they pay sizeable dividends in the 4% to 6% range.
Ken Trester, Maximum Options
U.S. stock indexes continue to march higher, and that bullish trend will be in place as long as the Dow is above 14,700, the S&P 500 above 1585, and the Nasdaq above 3300.
Our indicators remain bullish, and as long as stocks retain the momentum they have had over the first few months of the year, options players should continue to weight toward bullish positions. But continue to take some tactical bearish positions such as buying puts, just in case
John Lansing, Parabolic Options, Trading at the Open, and Trending123
At least in the short term, despite a rather significant increase in volatility in the bond market, this market doesn’t look able to manage any type of rollover, no matter how many asset classes worldwide continue to completely get hammered, from high-beta currencies to commodities.
Want to learn how to rein in your subjective side to capture more profits? Jon Markman is hosting a free 30-minute webinar Wednesday, May 22 at 4:30 PM Eastern: Trade Against Your Gut: When Instinct is Your Worst Enemy.