Mixed housing data before the opening was completely ignored.  What dominated commentary was whether or not the Federal Reserve would remove the word “patient” be removed.  Housing starts plummeted 17% month-over-month.  Building permits were up, but housing starts overshadowed the morning economic release.  As the day wore on the focus is on the Federal Reserve.  Many so called “experts” seemingly know what the Federal Reserve will do tomorrow.  What we saw today was a very impressive day out of the Russell 2000 and NASDAQ indexes.  The Dow lead to the downside with DD, CAT, and V hurt the blue chip index.  NYSE volume was lower as both the S&P 500 and Dow avoid a day of distribution.  Not a bad day overall if you were on market leaders.  Perhaps a big day tomorrow, but we are sticking with our process and letting others listen to the noise.

Today the dollar inched higher, but was mostly flat on the session.  Both EURUSD and USDJPY were pretty much flat on the session.  Given the Federal Reserve ends its meeting tomorrow it is no surprise currencies were held in check for the most part.  One day won’t make too much of a difference, but it may take the release of the statement for any volatility to enter into the market.  The major trend is in place for now and has a good chance of continuing.

Quickly looking at the Dow for a minute and you can see DD putting tremendous pressure on the index.  CAT continues to be a drag as it is near its 52 week lows set last Friday.  The index is can’t seem to hang onto gains like the NASDAQ and Russell 2000.  These two indexes continue to be the strongest amongst the group and should be your focus.

Our focus here is to continue to manage our risk with exits and position sizes.  Given the NASDAQ and Russell 2000 it does appear this market continues its path higher at the moment.  We are not about to argue with this market and its trend.  Sure, we can roll over tomorrow after the Fed.  The issue here is we have no way to predict the future.  What we know RIGHT now is while the market has pulled in from its highs the major trend is up.  The money is made in riding these big trends and not with trying to guess when the trend ends.  Take the guess work out of your trading and come join the Big Wave Trading team.

Tomorrow at 2pm EST will be fun to watch from the sidelines.  Perhaps we’ll have some intraday stocks to watch, but for the most part we will be enjoying the fireworks post-Federal Reserve announcement from the sidelines.