Not whole lot to get excited about over today’s action. The good news is we stayed in a relatively tight trading range for the day. Volume was lower across the board as we continue to have a hangover from the weekend. We continue to see the average true range for this market to be at 52 week lows. The tight trading nature of the market will bode well if we are able to break free of our current trading range. Of course, this works both ways and why it is prudent to be ready for anything. We’ll continue to trade with caution and await a direction from the market.
The final hour of trading was not ideal as selling continued to push stocks lower into the close. Of course, tomorrow being “Turnaround Tuesday” today’s negative action may be negated by Tuesday’s performance. We would not recommend you hold your breath though. Stay disciplined with your strategy focusing in on risk management. No need to be a hero and gamble with your hard earned gains.
Materials were the clear winners today rising more than one percent on the session. Unfortunately for the S&P the group hardly makes up 3% of the total S&P 500. Metals and Mining were the biggest winners within the group followed by chemicals. FCX was the biggest mover of the mining group adding 3% on the day. The stock currently sits on its 50 day moving average. Not a typical stock we usually play, but it does appear to have some momentum behind it.
The US Dollar took a break from going up today as it has been on a tear since early May. Many were counting the dollar out, but with the Fed ramping up rhetoric over a June/July rate hike it appears it has pushed the dollar higher. Just prior to May the cross currency EURUSD appeared as if it were going to return to its glory days. The market had other plans.
We can wrap up today’s action as lackluster trading. AAPL did help the market withstand the selling at the close. We remain in neutral mode and until we break in either direction we’ll continue to proceed with caution.
