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 Take a Step Back in Quiet Session
For the 9th Monday in a row the market closes lower on very light volume. After Thursday and Friday’s trading sessions today’s pullback is a welcomed sign and a very bullish one. The Russell 2000 led the decline with the NASDAQ not far behind with losses of .56% and .41% respectively. The key point here was volume did not accelerate with the selling and dried up on the day. Institutions were not dumping stock today and for now a good sign heading into a fun filled central bank week.
Wednesday the Federal Reserve kicks off the news week with their rate announcement in the afternoon. Tuesday we have a few economic releases, but the focus will be on Wednesday and would expect another day similar to what we saw from the market today. I am not trying to predict what will happen tomorrow, but merely pointing out volatility kicks in after rate announcements. We’ll be focused on the price action of our stocks rather than guessing where we may go from here.
Sentiment continues to be quite negative. AAII Bulls have dominated the survey has of late and II bulls continue to disappear. Any interesting poll came across CNBC today and one that asked if the current rally was going to continue. 71% of respondends thought it was going to be short-lived and we’d head lower. Mind you this is CNBC whose job is to pump stocks and it was quite astonishing their viewers are that bearish. Is it that the investing public is too bearish on this market? Time will tell and so will prices.
Today was much of a do nothing day. A very boring day, but one that was a good step forward for our buy signal.