Today started relatively quiet as futures simply did not have any news to digest. From the start it was the NASDAQ seeing the most attention as the index quickly recovered early morning losses. Unfortunately, once mid-morning hit the market as unable to gain much traction and we began to sink lower. A late afternoon rally helped propel the NASDAQ back into positive territory. Volume was higher on the NASDAQ while the S&P 500 saw volume drop. It appears this market is simply working off overbought conditions at the moment. At this point it does not appear to be something more sinister. As conditions change we will adjust. For now, we remain in consolidation mode and will continue to obey our trading signals.
You know it is a slow day at CNBC when the focus is on a NFL player. Albeit an awful situation and the NFL is big business you know there is a void in financial news when the NFL is the leading story. One story tomorrow we will witness is the long anticipated release of the new iPhone. We do not see a shortage of analysts vying to “pick” the direction of AAPL after the release. Past few sessions have not been kind to AAPL, but the long term trend starting in August in 2013 is in place. A move back above the 10 day moving average would be notable. On a side note, we do find it quite crazy people are paying others to wait in line for the new phone. The release is a few weeks out and folks cannot wait. Regardless if you are crazy or not, it will be interesting to see how the stock reacts after the release.
A chat room favorite CAAS broke into a multi-year high. We have quite a few nuggets in the chat room and while CAAS is one of many the move today is a signal it has the potential to continue the current trend. INFI is another chat room favorite, but it comes with some risk as it comes off its most recent low. There is a ton of value to the names we catch in the chat room. Make sure you grab a platinum membership to take advantage of our chat room.
Not the best start to the week, but the bull should take it. This market has a hard time of selling off and without heavy distribution it is unlikely this market will turn lower. If it does we will simply cut our losses.
