From the Trading Desk
Void of economic releases the market did get showered with more than $3 billion in asset purchases from the Federal Reserve. A hiccup in the morning was quickly support as the Federal Reserve Open Market Operations flooded the market with fresh new cash. Over Europe the DAX closed in the green for the 11th straight [...]
Heading into the week the US market once again watched the Nikkei continue to move further into the stratosphere. Futures were pretty anemic heading into the trading session today. Overnight news focused on the plunge in precious metals as Silver and Gold were hit hard. Despite the negative open and sentiment both precious metals were [...]
The Big Wave Trading Portfolio remains under a BUY signal and currently has zero issues weighing on it presently. On the short-term the market is very extended in price compared to trailing key moving averages. Logic dictates that a natural pullback to some form of support levels (fibonacci, price lows, or a moving average) should [...]
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Stocks Jump Despite an Intraday Shakeout
Coming off a long weekend stocks jumped early and pushed higher throughout the morning. When Europe closed sellers took to the market sending stocks to new lows. Of course the movement was blamed on the union across the pond and will continue to be the excuse. The afternoon was a much different story with stocks finding support into the close. Volume was higher than last Friday, but was below average. Day 6 of an attempted rally was solid, but did close a bit disappointing given the rise in the early going.
We have been touching upon in our chat room the market putting in a lower high and lower low confirming a downtrend. There are many ways to spot new trends, but a classic formation is the market setting lower highs and lower lows. April and May’s sell off did considerable damage to the market and there are a variety of reasons for the pitfall. But, those reasons don’t matter and we should be focused on is price and volume. It is fun to have a discussion and debate what may or may not happen. However, at the end of the day the only thing that matters is price!
At the end of the week we’ll get to endure all the hoopla over the jobs report. The last few have been very disappointing and the trend has been to fall on the negative side. If you are wondering how to position yourself in front of the report read the paragraph above. Price! We’ll probably get another poor report with unemployment falling below 8.1%. I don’t trust government figures as they like to “adjust” the number to make the number look better. A true number would include those who have completely dropped out of the workforce. However, that number would be super depressing and not something any administration would want to post. The number will be the number and we’ll be reacting to the movement of the market and not our opinion.
I wouldn’t expect too much out of this market even if we do get a follow-through day. We’ll need to see new leadership form, but at this point seems like a long shot. Follow price.