AAPL weighs down the NASDAQ as the broader market is led by the Russell 2000. It was nice to see small caps have a nice session, but the Russell 2000 remains well behind the NASDAQ 100 and S&P 500. Suppliers for AAPL did not have a good session, but aside from a few names today’s session was not that bad. For much of the session stocks were in negative territory. Late day buying helped boost the market, but failed to push the NASDAQ into positive territory. While many pundits are looking for reasons as to why this market will fail we are simply looking for our trade signals and manage risk.
We continue to see new signals on the long side. Yes, we continue to see new long signals from a market that is supposed to fail and head back to August lows. The reason why we win is because we follow our time and battled tested system. Managing risk is paramount.
This market has not shown us enough signs we are rolling over. Distribution has yet to pile up and we have not had a lot of sell signals hit our portfolios. In fact, we continue to get buy signals!
Do not make this more complicated than it needs to be. Define your risk and know your exits. Of course you must above all else cut your losses short.
