Stocks break out on above average volume lead by the CSCO after hiking its dividend and an upbeat earnings report. A strong move by the NASDAQ with above average volume certainly a big sign of strength and a clue Institutions were behind the move. CSCO certainly had a hand in the surge in volume, but it wasn’t the sole reason for the move and this is a clue Institutions had a hand in the move. Despite an awkward move higher off the lows we have an uptrend and now with volume to boot. Today’s move above Tuesday’s high on volume has rendered the stall day useless. The trend up and we’ll continue to act accordingly.
Today was a certainly a nice breakout day for the market. This is what we have been looking for and with today’s move above Tuesday’s high on volume certainly is an encouraging sign. Leading stocks are doing well, but this is an earnings game and index game. AMZN is a stock who carries a very high price to earnings ratio, but broke out nearing an all-time high. We like to see this action from stocks and is an important piece of the puzzle to keep this market moving higher. Where will this rally end is anyone’s guess, but for now we need to be long and ride the wave higher.
Sentiment did not change much week over week as bears came in at 28% and bulls at 37%. Not much movement from either camp despite the most recent move. Again, this is not a conventional market rally with all the economic headwinds we face. This rally simply points out your opinions do not mean much and price action will always rule the day.
Tomorrow morning we’ll get to watch the nonsense induced by options expiry. I am sure many traders will be looking towards the weekend and leave early. Summer is almost over and everyone should be taking full advantage! Get out there and enjoy life.