We began the week with a light volume affair with most stocks holding up well. Complacency continues to hit all-time lows as many traders continue to see very little volatility ahead. Crude oil was lower again hanging around the lower half of its 48 handle. It is good to see the commodity below $50 a barrel as it will help the consumer, right? Small cap stocks and the NASDAQ were the winners of the session. It was good to see the Russell see some sort of support. Not a bad way to start the week. Sellers appear to be hiding out in a back alley as we have yet to see any major selling. Despite higher rates this market continues to chug along. It will be important to see us continue to push higher and add onto to these gains once the Fed meeting has concluded. Until then we’ll continue to manage our positions accordingly.
A major coastal storm is set to hit the Northeast on Tuesday and that should certainly cause issues for many people. From DC to Boston millions of people could be faced with power outages and downright nasty weather. It is a good thing it will be a single day event. The market could really care less, but volume may be on the light side like today given many traders will likely be home and away from the office. Something to keep an eye on.
The VIX continues to be dormant. Traders simply do not anticipate much volatility moving forward or at least for the foreseeable future. It is easy to see why as the market really has not seen any dramatic moves as of late. When was the last time the S&P 500 closed lower more than 1% on the day? You’d be looking back quite a ways to find it. This rally has been very good to us and it has because we trade on price not on what we may think will happen. Now, we remain in an uptrend and have yet to see the signs this market is on the verge of pushing lower.
We must continue to be vigilant with our portfolio. There is no need to be a hero. We have our exits in place and if we move lower we are protected. Otherwise, any type of nervousness is simply just nonsense. We hope you have a great week! In the spirit of March Madness use coupon code: MADNESS to take 30% off any subscription price!