From the Trading Desk

A Last Minute Kick Save lifts the Markets off their Lows as USDJPY Pushes above 100

A better than expected jobless claims figure failed to inspire buyers to hold stocks in positive territory at the start of the game. A weak wholesale inventory report sent sellers rushing into the market only to be saved once again by the Fed’s Permanent Open Market Operations (POMO). Big earnings moves by GMCR and TSLA shined as shorts got their clocked cleaned. Both stocks have been in uptrends and have moved quite nicely recently. Some fireworks went off in the late afternoon as the NASDAQ dropped from its high of the day right to its lows. Rumors of an article surfaced, but the move came at a time where the USDJPY surpassed 100. A late day buying surge lifted the market off their lows avoiding a potentially negative close.

Volume ended the day mixed with NYSE lower and the NASDAQ higher. A day of distribution was avoided, but given the amount of distribution during April this market can endure quite a bit of distribution. One could call the action on the NASDAQ stalling, but this type of action really hasn’t mattered. Distribution is simply being ignored with the Fed’s POMO going on fresh new cash continues to flood the equity market.

It was about time this market finished the day lower. We have seen this market go straight up without much consolidation and today we did get it. It would have been ideal for the market not to head into positive territory only to see the gains evaporate. Given the QE and ZIRP environment is difficult to think or even try to rationalize as “normal.” It is best to stick to a rules based, emotionless trading system. Get in with Big Wave Trading.

Perhaps the fed will taper their QE program in the latter half of 2013, but no one really knows. Most are asking what to do when the Fed does end QE, but perhaps another question should be how to invest if QE doesn’t end. Our approach answers both these questions. Join and get educated in driving for gains.

Have a great weekend.

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