A volatile day on Wall Street as early morning selling gave way to late morning buying. Sellers would not be outdone as they took control in the final hour of trading. Volume ended the day lower, but not surprising as today was a Monday and Friday was month end. We enter the final month of the second quarter with pretty light gains for the year in the S&P 500 and NASDAQ. Believe it or not the Russell 2000 is ahead for the year, but has been weak as of late. The good news on the session was we were able to find support as it appeared the market was going to let go. Buyers quickly raced in and stopped the bleeding rather quickly. We still remain in an uptrend and while there does appear to be cracks emerging we still have not seen the evidence pile up against this uptrend. At some point we will, but for now we will continue to operate within the current uptrend.

Industrials and Health Care were the two big sector winners on the session in the S&P 500. Telecom Services and Energy were the laggards on the session. The dollar moved higher today as it continues to consolidate above its 50 day moving average. A rising dollar should continue to put pressure on commodities including crude oil. Energy will certainly have pressure added to it if crude oil slides further as the dollar rises. It is pretty obvious Health Care remains the winning sector on the year and if you are on-board there aren’t any reason and certainly no evidence supporting you to get off the bandwagon yet.

This slow moving tend here is certainly weighing on many traders looking for action. There are opportunities intraday. We post them each morning for our platinum subscribers. For those who can sit tight there do not push a trade just for action. This is where many will get into trouble by overtrading a market you simply need to sit in. If you have a hard time sitting on your hands then we suggest simply shutting down your account and do not open it up until the end of the session. It is a great way to keep you from trading.

The divergences we are seeing with regards to the Dow Transportation index and RSI is likely not good enough to spell immediate trouble for this market. Our holdings continue to, for the most part are acting well. Had we been getting multiple sell signals with a ton of distribution on the major indexes we would be more cautious here. We always adhere to our exit strategy no matter how bullish we may think we are. Sticking to our discipline will reward us well over time. Stick with Big Wave Trading!

Today was a good start to the week as we did see support rush into the market. We do have the jobs report Friday which will excite the economists. Will it provide some juice to the markets? Only a fool would guess. We will stick to our price signals and continue to push forward. Cut those losses short.