From the Trading Desk

Dow Continues March into New All-Time Highs

Just another day in this low volatility, high valuation market. Stocks were mixed with the Dow Jones Industrial Average moving into new high territory while the NASDAQ and S&P 500 were lower on the session. Volume was mixed with NASDAQ falling on the session, but higher on the NYSE. The NASDAQ missed a day of distribution due to volume lower on the session. Not an exciting day by any stretch of the imagination. Low volatile markets tend to bore many market participants forcing them into bad trades. This market could very well force you into bad habits and ultimately cost your capital. We want you to succeed and grow your portfolio. We continue to see a resilient market heading into the next Federal Reserve meeting. Stay with the trend.

Who knows what the Federal Reserve will bring to the table and how the market will react to it. No one knows the future. We know right now we have a market that continues to shake off multiple North Korean missile launches, low volatility, high valuations, and the list goes on. Not sure anything other than the Federal Reserve completely pulling the rug out from underneath the market what can take down this market. Please try and not answer that. Stick with price action and price action only. There is no need to try and figure out every scenario. We remain long with an exit strategy and we certainly are not forgetting the weak seasonal period we are in. Do not fight the trend. Ride it like we are doing.

Sentiment has turned a bit bullish in the AAII survey. Bulls are above 40% and bears nearing 20%. Quite the spread and not to mention the lack of bears. Something to be aware of, but we have our stops in place in the event this market wants to turn lower. In any event, the crowd has shifted towards the bullish end of the market.

We hope you have a great weekend. This week has been a good week of trading and we continue to see gains from this market. We’ll continue moving right along with the market until it stops going up. Until Monday we hope you enjoy the weekend.

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