The stock market welcomed back traders with a dull day, but big time volume. On the bright side we did have the NASDAQ and Russell 2000 pushed higher. Institutions were back from summer vacation in a big way as volume jumped well over Friday’s level. Aside from the rally in Russell 2000 we saw the dollar rallying slapping commodities lower. Energy led the commodity complex lower with natural gas fell more than 4%. Crude oil was not far behind followed closely was gasoline. Not joining the party was S&P 500, but it did have a nice rally heading into the close. Our story is the same and given the state of this uptrend we have no reason to depart prematurely.
Two big breakouts today are very telling regarding the health of this uptrend. It is no secret we are fans of FB and TSLA. FB is nearing another all-time high it set back in July after posting earnings. What is impressive is FB has been able to shake off downgrades to the stock. Price tells all and it is giving those downgrades the middle finger. TSLA reached a new all-time high today. All-time highs are not bearish and are not a signal to “short” the stock. Although, many will try to short all-time highs only to see their trading capital dwindle. As these to stellar stocks rise it is a sign this uptrend still has legs left to run higher.
There will be plenty of talk over this Friday’s job figures. At the moment estimates are for non-farm payrolls to rise 225,000 with a rise of 210,000 of private payrolls. It seems like a good number simply because the number of jobs created has been quite dismal. Regardless of what the number is we do not have a way to forecast how the market will react. No one can know precisely how the market will react. Why bother with gambling? What we know right now is we are in an uptrend and any time we have a slight dip in the market is bought, not sold. Until this situation switches it is difficult to go against what works until it does not. No matter what the jobs number is we will wait patiently for the market to settle and use our signals to dictate our movements.
A good start to a holiday shortened week. We will continue to monitor and act on our signals as this market continues to push higher.
