The broad market could not muster enough buyers to close in the green. Volume ended the day mixed with NYSE volume higher as NASDAQ volume ended lower. Big cap Tech continues to perform well as buyers are flocking to these names like investors used to pile into blue chip names. NFLX was the only FANG stock to close the session lower. For the most part there is still a positive hue over this market. We are treading water and continue to work off the gains made in January and February. It is not as pretty as we would like, but we can only trade the market in front of us. Keep grinding and with Big Wave Trading we will extract the gains this market will cough up.

Reading an article on MarketWatch dot com the headline read a bearish signal may mask a stock market rally. Seriously, some was paid to write an article to write double speak. The market will do what it wants and you either are long, short, market neutral, or on the sidelines. The author of the article wants to be bullish so uses hedging language in the event he is wrong. The way to properly address the issue of you being wrong is to have an exit strategy. When will you sell or cover? When do you take profits? These questions should be answered prior to entering into any position. Yet, most ignore the most important part of any strategy. The second most important thing is position sizing. The easiest part is entering the position. Do not get lazy and ignore the first two. If you have no idea what the first two are and need help come join us.

All the FANG stocks and AAPL are not presenting any opportunity to enter, but they are a great barometer for this market. There are a few higher priced names in buying areas. NTES is a Chinese stock pulling back to its 50 day moving average. The stock has tremendous growth and your cut loss just below the 50 day limits your risk. A long with NTES MKTX has pulled back into its 50 day. Most are scared away from higher priced names, but they too can deliver huge gains. Do not ignore higher priced names simply because you cannot purchase 10,000 shares.

Not the start we would have liked to kick off April and the second quarter. While not great we are still in an okay position to push higher.

We hope you have a great week!