From the Trading Desk

Stocks Rally as Volume Inches Higher

Living below the 50-day moving average did not last long for either the NASDAQ Composite or S&P 500 as buyers hopped back into the market. Volume was higher, but only be 1.7% on the NASDAQ and 1.33% on the NYSE. Solid price action, but we did not see a flood of buyers rushing into the market. Par for the course when we look at this rally in totality. Impressive day for much of the market as we saw some positive action from GOOGL, FB, and AAPL. There are not a ton of stocks out there looking great, but once again we have a bunch of new longs for our subscribers. It cannot be that bad out there if we are getting tossed buy signals on stocks. We may very well be wrong, but for now this stock market remains resilient and is poised to continue to push higher. Steady as she goes.

BABA continues to be a strong stock and has been a huge winner for quite some time. VRTX is a stock continuing to act well despite biotechnology stocks have had tough year. There are pockets of strength and it is a matter of finding it and getting long the stock with a plan. MDXG is another stock far from perfect, but currently working. FB is a large stock, but it too is potentially setting up for a big run given its most recent price action. SNAP has had a ton of volume at the lows here and it will be interesting to see if it can hold the lows set last week. NTNX is another stock to keep an eye on as it consolidates its move off its all-time lows.

We are still in a seasonally weak period and with summer time trading still hanging over us there is a higher rate of failure. Friday, Draghi will be speaking at the monetary summit in Jackson Hole Wyoming. DAX has been struggling trading below its 50-day moving average since June. Any hint at expanding QE or support for the capital markets any way will likely send stocks higher. Of course, price confirmation would be what we need. However, it is something to keep an eye on later this week. Keep an open mind when it comes to this market and be prepared for anything.

Futures this morning are indicating a lower open. No real surprise given the gains yesterday. NASDAQ distribution count remains high and it is very important we keep our losses in check. Letting them get out of hand will only lead to massive heartache.

We hope you have a great day of trading.

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