The bulls didn’t utilize today’s bullish opening gap in the beginning, yet have come back strongly. Importantly, both HYG and HYD support the developing upside move, therefore a quick momentum play with a very favorable risk-reward ratio is justified – please see the trading positions section for details.

Trading position (short-term; our opinion): long positions at market (that’s 2720 currently) with stop-loss at 2710 and the binding take-profit at 2775 are justified from the risk/reward perspective. Once S&P 500 moves over 2755, the stop-loss order is moved to 2745.

Thank you.

Monica Kingsley
Stock Trading StrategistSunshine Profits - Effective Investments through Diligence and Care