What a wild ride in the markets today. While not as wild as September 2008, but given the context of this rally it was quite a ride. Early morning sellers went to work on the market pushing stocks to the session lows in no time. Slowly, but surely buyers began to push into the market sending the market back to the highs of the day nearly closing positive on the session. Bank earnings are set to kick off and many are awaiting whether the banks can deliver on earnings. Perhaps more importantly traders will be looking to see if guidance will match expectations going forward. We will take it one day at a time and leave the guess work to the professional pundits who believe they are market savants. Price is what matters and we continue to see a market continually see support. The trend remains alive.
Sentiment continues to favor the bulls. The NASDAQ has been moving higher, but the other major indexes have remained flat. No real selling helps keeps bulls elevated. Bears did tick higher week over week. Not that we need to see extremes. However, at some point it would be nice for this market to move higher once again. Earnings will certainly be a catalyst and beginning tomorrow we begin to see a slew of earnings reports. Be on your toes.
The VIX is lame. This morning’s selling certainly did help push the fear index higher. However, buyers quickly squashed any chance the VIX had to move higher. Investors are not expecting future volatility to be a factor. A nice smooth ride higher? Time will tell and the VIX is simply forecasting continued quiet markets.
As always, our chat room will continue to have our intraday trades. Our end-of-day trades are always executed at the market open. Come and join us by signing up for a platinum membership! Enjoy the weekend.
