Volume crept back into the market today as the market adjusts to tomorrow’s headlines. Germany’s court is set to rule on the legality of the European bailouts at 10am EST. Later in the day AAPL is set to unveil the iPhone 5. The stock continues to pull back in heavier trade as investors are signaling uneasy feeling regarding tomorrow’s announcement. Leading growth stocks continue to pare back gains ahead of the ECB and the Federal Reserve two day meeting. The fun will begin tomorrow and today’s session did little to sway investors one way or another.
There is certainly a bit of hesitancy in the market regarding the next few days. AAPL’s action for one is not bullish by any stretch of the imagination. However, the price action is not overly concerning it’s the selling on increasing volume causing the concern. Stocks always take the escalator up and the elevator down and with so many important events occurring weak bulls are selling. Selling because of fear is no way to trade and the quickest way to lose your stake. For now, this market is being held hostage by the ECB and Federal Reserve.
Tomorrow there will be much more to write about and of interest to us. At the beginning of this week it was clear the party would get started on Wednesday. We have, so far escaped any real damage with the market holding steady ahead of our big headlines. Of course, our focus will be on the price action rather than what the headlines are. We’ll be ready to take action.
It is hard to believe 9/11 occurred 11 years ago today…