Today was another strong performance from our stock market leaders and overall stock market. Volume unfortunately did not accompany today’s move, but given individual stock moves volume is secondary. It is nice to see gains from market leaders especially when they are large positions in your portfolio. If you had paid attention to the Syria mess or feared the “taper” you have missed an opportunity in plenty of moves. A decent start to the week and we are encouraged by the moves we are seeing in our growth names.
It appears Obama is floundering in a big way with his view of Syria. The threat of an attack is still there, but it would come at a great cost to Obama and democrats. Can they afford to lose their base for the 2014 elections? Aside from Syria the Federal Reserve Taper won’t hit home till next week when the Federal Reserve will meet. Next Wednesday, September 18th will be when the FOMC rate decision will be announced and the market will surely pay attention to the language of the release. We do not have a clue what the Fed will do nor how the market will react. However, there isn’t much in the way of this current rally off the August lows.
This rally is starting to look like July’s run from June’s lows. If you recall the market didn’t follow through until very late in the rally. Precisely why it pays to listen to your individual stock signals rather than ignore them because things aren’t proper. If you haven’t already noticed QE has rendered a lot of “patterns” obsolete. Only price is left for us to use and it has worked out quite well for us. While trading volume continues to shrink price continues to be the only signal in time.
Stick with the trend.