Nice day across the board with solid price gains despite mixed volume. The NASDAQ enjoyed solid gains with volume higher on the exchange. NYSE volume ended lower, but typical for a Monday session. This week is a holiday shortened week with Friday’s Good Friday holiday. After a burst of buying in the morning gains were quickly erased and the market was back to where it opened. Buyers would not give up so easily pushing the market slowly higher to new highs of the session. The close was pretty decent as price gains were held. Now we await some follow-through before we have any bit of confidence this market can produce new highs. A good start to the week, but we will need more.
Energy and financials led the market higher today. Energy may have been a bit curious with oil continuing to head lower. Plenty of energy names look to be pushing higher. Large cap names like XOM and CVX appear to have inverse head and shoulders patterns. One could easily just use ERX for exposure. However, big gains can be left on the table. Solar appears to be perking up as energy names are trying to carve out bottoming patterns. ENPH is a favorite of ours as well as FSLR. Even TSLA is trying to push off its lows. You can never let your guard down in this market as there will always be opportunities you do not want to miss.
We know cutting losses are paramount in our world. It is a cardinal sin. The other cardinal sin is ignoring trade signals. Missing out on potential gains and potential monster gains is devastating to your portfolio. Do not give up simply because you think this market could not possibly cough up gains. Last October we saw a 9% dip in the S&P 500 had many traders running for the hills. They missed out on a fabulous run into the year end. We will not miss out on a potential run.
A solid start to the week. We need follow-through from buyers, but there are signs we could push higher. Will energy lead the rebound? Will TSLA regain its luster again? Sit back and enjoy the wave with us.
