Today’s market was able to shake off fears from Greece and what was lurking in the Federal Reserve meeting minutes. Starting the session economic data was less than desirable, but bad news typically has been good news. Greece was in the spotlight as the country was waiting on the EU to grant an extension on their debts. They received the extension, but the market quickly focused on the Federal Reserve meeting minutes at 2pm EST. The usual spastic action after the release occurred. Despite the nature of the moves the market was able to close near the highs of the session as the Russell 2000 led all indexes with gains. A decent day of consolidation for the S&P 500 as volume slipped on the session and we would like for the NASDAQ to do the same. Our trend remains in place and we will continue to follow it higher.
We certainly like to see the small caps lead this market higher as it is a good sign. The Russell 2000 is in a position to really push off this recent resistance level and shine. Small caps have not been in favor for quite some time as the leadership has been in the S&P 500 and NASDAQ. Speaking of the NASDAQ the index closed higher for the sixth straight session. Unfortunately, each day volume gets lighter suggesting the willingness to support these higher prices in the short term is waning. A little consolidation in even lighter volume would go a long way for the NASDAQ. This situation does not turn us bearish on the index, but we do recognize where we need to see the market consolidate. We are in a good position to see higher prices across the board. The real question is: are you positioned for it?
It is quite clear the market is ignoring any risk crude oil, Russia, Middle East, or Europe may present at this time. Will it eventually? Maybe. Our way to combat risks is through position sizing and our exit strategy. We cannot see into the future and nor can anyone else. Those who claim they can are simply delusional. You simply cannot miss an opportunity to make gains as it will limit your upside. It is just as valuable as limiting your downside risk via stops and exit strategies. Maximize the trend. A great example is with VIPS. The stock is a long-term holding and is now up well over 500% since July of 2013. What would your account look like with a holding up over 500%? Join us and you too will have the opportunity to find these types of stocks.
We are pleased with this market at the moment. How can we not when we are positioned for upside movement. This does not mean we do not have our exit strategy in place in case this market turns south. Our plan is always to be prepared for the unexpected and our model allows us to take advantage of any situation the market can throw at us. Ride the trend.
