Earnings led by AAPL were a real drag on the NASDAQ today as the Russell 2000 continues to lead this market higher. Volume was up on the session, but it does not come as a surprise. The key part of the FOMC statement was the fact June’s potential rate hike is now off the table. While the odds of a rate hike were only 20% the next potential rate hike would be in July. We still maintain the likelihood of a rate hike is pretty slim. Our uptrend no matter what people think remains in place. You can either jump on board or miss out. Worse yet go short and get railroaded. Stick with the trend.
There is nothing complicated about this market unless you make it complicated. Central Banks across the globe are desperately trying to lift stocks for the wealth effect. It does not mean stocks will go up forever, but there is the Fed put. Trend remains and the more you fight it the worse it becomes.
Outside of the negative action from the NASDAQ was how the market closed the session. We are certainly nitpicking here, but it was not the type of close you want to see. A push above today’s high is a bullish situation.
Keep it simple and stick with the trend.
