A light day on the street as Columbus Day had many off the job and enjoying a long weekend. Volume was off about 20% across the board. Light volume on Monday’s is no real surprise as many Monday’s have been light. The VIX has come back to earth in a hurry and is certainly signaling volatility to quiet down for the foreseeable future. Small caps ended in the red today, but the group has been leading off the lows and a little rest is not surprising. Things continue to look positive for this market and while we are overbought we are seeing some positives this market can hang onto. While we are not completely out of the woods completely we continue to execute our strategy and making gains.
It is hard to gather a lot from today’s action as volume was extremely light. Stocks like AMZN, FB, PANW and others are looking good. GOOGL is even looking relatively good. We have other names we have for our members. Earnings are just around the corner and it is good to know when a potential long is about to release earnings. Risks are too great to gamble with your hard earned capital. Up next are bank earnings and while Energy earnings are expected to be dreadful the market will need bank earnings to be better than expected. Do not leave yourself open to pure chance. Stack the odds in your favor.
When majority of the market participants return we will have a better sense of how this market is going to resolve its most recent rally. Stick with the plan and execute. There is no reason to be a hero or guess. Stay the course.
