Just when you thought you have seen it all the market dips on the release of Trump Jr’s email exchange. Regardless of your political leanings or thoughts on the current president are completely irrelevant to this market. The fact we found support after heavy selling says something about this market. Volume was up across the board as a good signal institutions were active in the market today. Small caps led the entire market higher with the NASDAQ 100 coming in as a close second. At this point, with everything that has been thrown at this market it has hard to believe some emails will take it down. If anything, it will be a much bigger event. For now, we continue to see a resilient market and with earnings around the corner anything is possible.
Selling was quite intense after Trump Jr. released his emails on Twitter. It was relentless and had the VIX spike above an 11 handle. Many bears were out on Twitter bragging about UVXY and nailing the precise moment the market turned. Unfortunately, many didn’t walk away with great gains. UVXY hit a high of 10.57 at its high, but fell to 9.64 by the close of the session. If you didn’t take gains quickly you were left with losses on the session. It pays not to be bullish or bearish. Follow your stocks.
It would be great to see this market continue to remain in its uptrend. Sure, we do need a correction at some point. A decent correction would help reset bases and would be normal. We haven’t seen normal in quite some time. We can wish all we want. However, we must trade the market in front of us not the one we want.
We will continue to stress the need to keep position sizes in check as well as your stops. Protecting your capital is our number one job and never forget it
