From the Trading Desk

Market Pundits Debate the end of QE while Stocks Close Mixed

A better than expected seasonally adjusted retail sales figure helped push futures off their lows prior to the market open. Volume was lower on the session staying true to form as far as Monday trading sessions go. The market did not get the benefit of POMO today, but tomorrow we’ll get up to 3 billion in fresh new money entering the market. This market has been relentless and today was simply another example of how powerful uptrends are. Leading stocks continue to power higher and we’ll look for this to continue.

Mondays have not been kind to this market uptrend. Tuesday’s have been the best day and with 3 billion of fresh new money it wouldn’t surprise us to see another positive close for Tuesday. The only day of the week showing negative gains has been Monday. It was no surprise to see the mixed close where the NASDAQ barely posted gains and the Dow to end in negative territory. Unless a catastrophic event happens prior to tomorrow the trend has been for Tuesday to end positive and we’ll expect it to close positive.

Does it matter when or if the Federal Reserve ends Quantitative Easing? It is a great question and one many will be trying to answer. Are you smart enough to figure out when it will happen? Or will you be like a 5 year old in a two hour car ride asking “are we there yet?” The reason why we’ll succeed is because we have a process using price signals. Taking advantage of natural price movements regardless of what our opinion may or may not be gives us an edge. What if the Fed never ends QE are you going to be taking advantage? Does endless QE even guarantee higher equity prices? Sure you may have the answers, but will the market prove you right? Stick with Big Wave Trading and you’ll navigate these waves with ease.

Make it a great week. Cut losses short and ride your winners.

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