As the 3pm hour began it appeared this market was ready to rocket higher. Continuing with the trend sellers were able to push the market off their highs of the session. The market did not start of strong with weak economic data hitting the wires. However, buyers were able to quickly rush into the market pushing the NASDAQ back into positive territory. Earnings continue to pour in and it continues to be a mixed bag. Volume was up across the board and with the NASDAQ in new high territory is a bullish signal. The only issue we have is the inability to close strong. We are back in control in this uptrend as this market finally followed through to the upside. While today was not perfect we are now back into an uptrend.
While today was a solid session for FB it was far from a good session. Yesterday during its after-hours session the stock was down as much as two points. However, by the open the stock had recovered and appeared to be on the move. It simply was not meant to be as sellers pushed the stock lower throughout the session. FB has just been one of those stocks showing a ton of potential, but failing to live up to its potential. CAT was another stock jumping at the open only to see sellers take control. Earnings is a tough game to play and it is incredibly important to know when your holdings are set to report earnings.
In this week’s version of sentiment we see not much has changed. AAII Bulls continue to be in the low 30s, bears in the low 20s, and those who are neutral remain above 40%. Will today’s session change the minds of those who respond to the AAII survey? NAAIM ended this week in the mid-70s where you would expect many active managers would be given the state of this market. Not much to be gleaned from sentiment this week.
When we take a look at market breadth advancing issues continue to outpace declining issues. New Highs outpaced new lows in a good sign for this market to continue its march higher. Even stocks above their respective 20, 50, and 200 day still show this market has plenty of room to the upside. There is always a potential of a breakdown, but for that we have our exits. However, we are not going to anticipate this market rolling and miss out on the opportunity to make money on the upside.
We have a nice uptrend in place and we are going to maximize our potential by shedding losers and riding our winners.
