From the Trading Desk
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 [...]
TSLA move this morning certainly gives longs a place to take profits off the table. The stock can continue to push higher, but this morning’s pop is a great place to book gains. Solid run.
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Russell 2000 and NASDAQ Lead the Way as Volume Jumps
A weak close once again dampens the day’s rally, but volume rises suggesting institutions have crept back into the market. Economic news will be light throughout the week and today wasn’t any different. By Mid-day the market had racked up good gains and volume was heavy suggesting the big players were active buying up shares of stock. While not overwhelming it is a good sign to finally see volume kick up showing institutions are somewhat willing to accumulate shares. We continue to see stocks move off of earnings releases and have been profitable. A good sign today and while we remain defensive we’ll need to see volume continue to flood the market.
Summer time is not known for volume, but on solid price gains we’d like to see volume come in at least above the prior day. If we are lucky, we’d even take near the 50 day volume average. So far, we have yet to see such occurrence and more than likely due to HFT and Indexing. Many mutual funds manage to an index or better known as a benchmark. “Just buy the index” means just that and therefore you are seeing money chase after stocks how are in their benchmarks. The key is finding the stocks under accumulation and using proper entries and exits. Remember, you must stick with it to capitalize on the opportunity out there!
Europe continues to be headline materials as Spain and Italy at some point will ask for a bailout. Economic news out of the Eurozone continues to be dismal. There isn’t any growth in the continent and now are relying on the ECB to bail them out. Same goes for the United States as many are expecting another round of Quantitative Easing. We may be rallying on hope, but it simply doesn’t matter. The mere fact we are rallying is all we care about. Reasons are pointless and by the time you have it all figured out the move will have passed you buy. Whether its bailouts from the ECB or the Federal Reserve printing more money at the end of the day it all boils down to price.
Always have a plan! Know your entries, exits, and position sizing. All are vital to your trading success. Remember, always cut your losses!