Disappointing economic data would not derail the market from pushing higher. Led by the S&P 500’s 1.07% gain the market enjoyed gains across the board. Lagging behind the major indexes were small cap stocks as they continue to lag well behind the major market averages. Volume was lower on the session, but this is due to yesterday’s end-of-the-month volume surge. We continue to focus on winning stocks and avoid laggards. In a bull market you do not want to be in stocks hitting new lows and bleeding cash left and right. So far we continue to remain in an uptrend and fighting this trend is quite silly. Manage risk through position sizing and exits. All else is simply noise. Many will continue to fight our prevailing trend as we continue to ride it and pick up profits.
Semiconductor stocks enjoyed a great day today. Even with the current decline in QCOM as a whole the group is poised to continue today’s gains. INTC is even looking to push back into highs set late last year. AVGO had a nice day, but still has work to do as the 50 day moving average should eclipse its 200 day moving average. A good sign for this market to have semis pushing higher as the group is an indicator regarding the market’s health.
Energy is an interesting sector as crude oil seemingly has found a temporary bottom. OPEC is set to vote on production levels and the sideways action in oil certainly suggests this market will continue to trade sideways ahead of the vote. Even with the flag nature of the price of oil we did get a signal on an ETF. If crude oil prices are set to push higher will it translate to higher prices for energy stocks? Time will tell.
As we get new trade signals we will continue to execute. There is no need to predict when this trend will end. When evidence piles up we will act accordingly. In the meantime, continue to operate in this uptrend and maintain sound risk management practices.
