From the Trading Desk

Volume Fades as Stocks Close Flat; AAPL Hits All-Time Highs

Coming off another summer weekend volume ended the session lower. The major indexes closed flat despite selling off in the early morning. Small caps had a tougher time with the Russell 2000 closed lower by 41 basis points. A solid day of consolidation coming off a week where we saw very nice gains and the type of action we are looking for from the market. AAPL became the most valuable stock traded today with the stock hitting an all-time high. Volume in the stock hasn’t been all that ideal, but the stock’s price action has been tight and continues to point to higher prices. A solid day of consolidation and we continue to expec this rally to continue.

Gold and silver turned higher today after starting the day lower. The precious metals are poised to move higher given their recent price action. Perhaps both metals are foreshadowing Federal Reserve action in the coming weeks or something more sinister. We simply do not care and since they are moving we want to get aboard. The reason for the move will certainly become apparent to us later, but we aren’t going to wait for it. By the time you find out the reason the move will be over and you will have lost out of the gains. Pay attention to price action and ignore the noise!

Summer is coming to a close and we continue to expec t the low volume environment to continue. Sure, normal markets have a bit more volume and aren’t computer driven. Who cares? Rationalizing moves so you don’t feel bad for missing them is not a way to trade. Do not miss out on winning stocks because you feel one way or another. A stock is moving for a reason just get aboard! Opinions are like asses, everyone’s got one and they stink. Price!

Greece talks are beginning to pick up once again. I am sure we’ll start seeing headlines from Europe. We don’t find too much joy in figuring out which way the market will move on any headline. All we know is we’ll enjoy the pundits rationalize the story as we take advantage of the move. The trend for now is up and we continue to act accordingly. Have a great week!

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