FryDay , OPEX

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Our View

First off, if you feel like it's gotten harder and harder to trade you are 100% correct. The PitBull and I both agree that there are some new and enhanced algos pushing the markets around, they do what's called sweeps. The ES trends higher, pulls back a little, and then drops 20+  points in a few minutes. We have seen a lot of this over the last 2 or 3  months and it usually recovers quickly. I don't think there is a big reason to be pressing bets this early in the year. 

During the sell-off off, I never changed my opinion about the ES going to make new highs. Sure the ES sold off but as I pointed out, the sell-off will feed the markets higher. Out of 12 sessions so far this year, the SPX has managed to close higher in 4 and 1 just barely. While that may seem like a negative, I disagree. After a 700-point rally and a new year there is bound to be pullbacks. But I did not think the current one was the beginning of a big letdown. Yes, there could be a letdown, it's all part of the shake-out process but I still think the ES is going up, and stories like the Wall Street Journal article linked below support that belief. I could have pulled a bunch of the story out and made my own but I like the Wall Street Journal and it's a well-written article. Will $8.8 trillion go into stocks? I highly doubt it but a good chunk of it will.

The $8.8 Trillion Cash Pile That Has Stock-Market Bulls Salivating