NASDAQ 100 led the market higher while the S&P 500 and Dow finished flat on the session as crude oil prices slumped. Small caps fared the worst with a decline of 30bps. FB continued its march into new high territory while AMZN struggled again. Our FANG stocks have now been shrunk to two. GOOGL reported earnings after the bell beating estimates easily. The stock is currently trading higher, but well off the after-hours highs. After Friday’s boost from end-of-the month rebalancing this market has followed-through on a new rally. However, there is still a lack of strong leadership and price action to support a sustainable rally. Time will tell, but for now we keep risk well in control and push forward.

At the very least we have a short-term rally we will certainly take advantage of any signals. We will likely have to take quick profits and of course cut our losses quickly. FB shows an earnings winner even at a high price can run quickly. For the short-term minded trader there are certainly opportunities to get some wins in our favor and we plan on taking advantage. We know there are only a few times a year where we will have the opportunity to make some gains. This may just be one and we do not want to get left behind. We have to remind you this doesn’t mean pushing your chips in all at once. We can only go on our individual signals and control our risk via size and exit. No need to be in the Wild West with our portfolios. Stay smart. Aim small miss small.

Economic numbers continue to come in and disappoint. There is really nothing out there other than Central Bank activity causing this market to go up. When you boil it down corporate earnings are falling, defaults in the oil patch, and lack of economic growth continues to be the problem. At the moment, only central bank activity will spark this market into moving higher as seen by the BOJ adopting negative interest rates. We can only control our actions and while the world might be disappointing all that matters is price.

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