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 Fall on Extremely Light Trade Ahead of Ben Bernanke’s Speech
The end-of-day selloff left a very bad taste in the market’s mouth albeit on very light trade. The last fifteen minutes of trading was not kind as the NASDAQ was hit very hard. On the bright side of things volume was even lower than Wednesday’s pathetic level. Institutions are simply not around to push any volume ahead of Bernanke’s speech. Jackson Hole was where Quantitative Easing part two and there are many hoping to hear the Federal Reserve Chairman to deliver on another round. We care about price and what we saw out of the market was not encouraging.
Volume is so low it is very difficult to gather much from the market. Individual stocks are a different story. If you have a stock hitting a sell signal you must obey your rules. There is nothing more detrimental to your trading than not taking a sell signal. Losses are very tough to come back from it is best you keep them small. Drawdowns will happen it is a part of trading, but letting them get out of hand is reckless.
The final trading day of the summer comes on the same day Ben Bernanke will be delivering his speech. It will be interesting to see how the market reacts to his speech. We’ll simply follow our rules and avoid the noise.
Make this weekend a good one and enjoy the long weekend. The big boys should be returning Tuesday bring back some real volume.