News Japan slid into another recession sent futures lower as the Nikkei fell more than 2% in overnight trading. Mixed economic news did very little to move futures in one direction or another. Early morning push higher was met with a fierce, but brief selling spurt. The market would come back despite taking much of the afternoon. Utilities were out in full force leading the charge higher. Volume on the indexes was lower on the session as the NASDAQ fails to notch its third day of distribution. Leading stocks did not fare well today as many were seen down more than two percent. An okay day for this uptrend, but we will need to see these leading stocks act better this week.
A leading index we follow compiled of market leaders had eight stocks down more than two percent. Six out of the eight stocks saw volume higher than their 50 day volume average. ATHM and VIPS were the only two stocks with volume lower than their respective 50 day volume average. Stocks like BITA which had tremendous volume on Friday saw today’s volume drop, but still above the 50 day volume average. Winning the session was AMBA as the stock rose two percent on the session. Not exactly what you want to see from your leading stocks. We will continue to monitor for stock signals as this uptrend continues to progress.
Historically this week prior to the Thanksgiving shortened week tends to be a weak one. The week does end higher about half the time, but gains simply cannot overcome the weakness from the downside. Expectations should be tempered this week and we will take what the market gives us.
We will continue to grind out this uptrend as we continue to find stocks sending us long signals. There is no sense in trying too hard to look for a market correction. Many will try, but few will succeed. Stick with winners where the odds are in your favor. Stick with Big Wave Trading.
