Another late afternoon lift helps send the Dow into positive territory to end the day’s trading session. Just after 2 pm stocks sat near the lows of the session, but buyers stepped up keeping the market from pushing lower. Volume ended higher on the day, but the early high run rate fell as the market moved higher. At this point volume hasn’t mattered to this market whatsoever. However, it does provide a nice talking point. Not too many standouts on the day, but AAPL resumed its march lower as the stock continues to remain in no man’s land. The S&P 500 and NASDAQ did notch technical distribution days. Despite the distribution the support at the lows we aren’t going to be a lot of weight on the day. We remain in our uptrend and until we see distribution pile up we’ll change our approach.
Two leading stocks who had tough days were SLCA and EVER. Both stocks had been moving quite nicely but a secondary offering and downgrade both stocks find themselves under pressure. SLCA issued a secondary offering, but the stock found support. Like SLCA EVER was downgraded and it too found support by the close. This type of action will shake a lot of people out of positions especially without a game plan. If you have defined positions size, entries, and exits you will not be so easily shaken out of positions.
Tomorrow’s advance retail sales will be the talk of the financial media tomorrow morning. The question they will try to answer is whether or not the Payroll Tax hike had any effect on consumer spending. I would expect it would not greatly move it one way or another just yet. We can sit here and waste time trying to figure out if the consumer was hurt or not. We are in an uptrend and price is much more important to us rather than guessing.
Stay disciplined and always cut those losses short.