Stocks hit more all-time highs as the Dow and S&P 500 have made it a habit to do so every day. Leading session gains was the NASDAQ followed by the Russell 2000. Volume was light on the session, but is in-line with a typical Monday volume wise. It appears the reason for the rise happens to be earnings, but all we care about is price as the reasons do not matter in the end. Today was another positive session and while we can quarrel over volume it simply does not matter. We will continue to hunt down potential big winners as this market continues to march higher.
While the Dow and S&P 500 have continued to move into new all-time highs the NASDAQ and Russell 2000 have quietly moved sideways. We were expecting the general market to move sideways digesting gains and the NASDAQ and Russell 2000 did just that. Consolidation is healthy and typical within an uptrend and by the looks of it both the Russell 2000 and NASDAQ have potential to move substantially to the upside here. Odds favor upside movement, but if we happen to be wrong we simply have our exit strategy protecting ourselves from a wrong trade.
At this point with many hedge funds trailing the broader market averages it will be interesting to see if we see them chase performance into the year end. Last year many were pointing to a potential year end chase, but we did not get the chase. If hedge funds decide to chase you will see plenty of stocks make very big moves. The thinner the name the easier it will be for a hedge fund to manipulate the price of the stock. We will keep an eye out for potential big winners.
We continue to find potential big winners for our members and tonight was no exception. No matter what we or anyone else thinks about this market we are slaves to our process. Our love for the stock market is why we are here. Come join us.
