From the Trading Desk
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 [...]
The morning did not get off to a great start with disappointing economic data hitting the market. Weak jobless claims and a Philadelphia Fed manufacturing index showed how disappointing the economy continues to be. By mid-day it appeared the market simply didn’t care too much about the weak economic data. Just as new highs were [...]
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Stocks End Higher For Second Straight Day as NYSE Volume Drops
Better than expected GDP and Pending home sales helped boost the stock market in the early going, but the rally appeared to stall out after lunch time. Heading into the 3 o’clock hour it appeared the market was ready to rollover into oblivion and then rumors started to fly. Obamacare would be struck down with a 6-3 vote by the Supreme Court justices. A big blow to Obama, but a positive for the stock market or so it’s perceived. Volume ended mixed once again with NASDAQ volume higher and the NYSE lower on the day. The close wasn’t stellar again for the second straight day with the market unable to hang onto the highs of the day. Some positives as we did close higher, but we remain in sell mode until the market can prove an uptrend can be sustainable.
A few leading stocks sold off today, but two in particular were quite nasty. ORLY and CMG have been two stock market leaders for quite some time and their actions today are quite negative. Even MNST had a bad day, but CMG and ORLY were particularly ugly. This is not the type of moves you want to see out of your stock market leaders. AAPL has been relatively quiet over the entire month of June. AAPL was a major contributor for the early ’12 rally. Perhaps it is putting in a base, but for now the stock has yet to move. The picture of leading stocks is not as clear as we’d like and will continue to monitor.
Tomorrow we’ll get a reading on GDP. The market is looking for 1.9% quarter over quarter annualized growth. Let’s be honest, we have zero clue what the number will be. However, we can use the price action to our advantage and follow it. If the number is lower than 1.9% it would certainly have the market pundits getting after the fed to print more money. How will the market react then? It is useless to guess here and to position yourself solely based upon your opinion on the number is silly. Use price as your guide and leave the guess work to CNBC.
Stick to price and cut your losses.