From the Trading Desk

Summer Trading Continues, NASDAQ hit with Distribution

Volume was mixed across the board as NYSE volume fell with NASDAQ volume rising on the session. The NASDAQ fell 56bps and given the higher volume is classified as a distribution day. We expect lackluster to weak action during the summer months and yesterday was a prime example of summer time trading. The positive on the day was selling did not intensify in the S&P 500 and Dow. On the negative side is small caps continue to fall slipping further into its decline. GOOGL and AMZN continue to act weak while FB and AAPL continue to stay above their 10-day moving averages. Even NFLX could shake off news DIS was starting its own streaming service. It is no surprise we are seeing this type of action in the month of August. We still must get through this month, September, and the first few weeks of October. For the most part we are holding up, but it does not mean we ignore protecting our backside.

European stocks continue to act week. DAX continues its downward movement Thursday morning. The FTSE 100 (UKX) is having difficult time the past two trading days as the index is down more than 1% now. US Futures are lower in sympathy, but it will be interesting to see if we see buyers step up to the plate when the US Market opens. Keep a close eye on how your stocks act over the next few days and use proper risk management to control your risk.

We continue to operate in this low volatility environment and it has an impact on the magnitude of gains. Just a little volatility goes a long way when it comes to ability to extract gains from the market. Low volatility will test your patience in a different manner. So many simply cannot deal with a slow market. Have the patience and discipline to get through this type of market. There is no need to be a hero.

We hope you have a great day of trading

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