From the Trading Desk

Stocks follow up Monday with Quiet Session

A quiet day on Tuesday with the Dow inching out gains while the S&P 500 and NASDAQ finish to the downside. Volume was mixed with NYSE volume jumping while NASDAQ volume fell on the session. Not a bad session by any stretch of the imagination given the big move on Monday. The VIX continued is fall from the highs on Friday after the index hit 17. North Korean fears have subsided this week as another idle threat was levied last week by the country. It is no real surprise they continue to mount threats against the US only to back down. At some point, one side or the other will cave and so far, it’s the Communist country. Seasonality is still working against us and the Dow alongside the S&P 500 remain above their 50-day moving averages. NASDAQ is in the same boat, but fell below its 50-day moving average last week only to reclaim it on Monday. The blemish now is the Russell 2000. The index simply cannot seem to get out of its own way. The market does not look terrible, but with seasonality in play coupled with summer trading anything is possible. Stay disciplined and ready for anything.

Commentary is short this morning. The important things to remember are certainly knowing where you are going to exit a position. Keep losses small so you have the capital to put to work when the time comes for proper signals.

Have a great trading day!

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