From the Trading Desk

Rally Continues; S&P 500 with 6 Day Win Streak

This market is certainly relentless as we continue to see this market make gains. The Russell 2000 index finally saw its first down day since the 21st of September ending an 8-day win streak. VIX remains in the single digits with many not expecting much volatility from this market. Wednesday’s biggest winner was utilities and on the flip side energy slipped, but closed off their lows. Twitter is full of traders looking to short every new high and they have been simply getting run over. We have no idea when this market will or even if it will finally correct. All we can control is what we do with the information we have. Read and react. Do not overcomplicate matters. Control risk through position sizing and your stop. Those who have stuck with this uptrend like we have been rewarded.

Friday’s job report will be certainly a newsworthy event. We have no clue whether it will move markets or not. Certainly, with the two hurricanes in the month of September will impact the numbers. How the market reacts is anyone’s best guess. We could very well see this market gap up and run despite the valuations. Let’s not forget earnings season is ramping back up again! There really isn’t a time when earnings are not in play. Always make sure you know when your stocks report. No need to gamble with your hard-earned capital. Your job is to protect and grow your capital and gambling with it will turn out badly.

FANG stocks are still banged up except for NFLX stock. Now, the stock is forming a handle and will likely wait on earnings before moving out of it. AAPL is still below its 50-day moving average.  The stock has struggled since its launch event. How many are really clamoring for the new iPhone model? Or will consumers simply upgrade to the iPhone 7 versus the new thousand-dollar model? Hard to know and we are not going to guess. GOOGL is turning itself around as is AMZN, but both are not out of the woods just yet. They report earnings later this month. Keep an eye on these big stocks.

AMGN has a nice little handle here. Biotechs in general remain a hot group. IBB continues to move out of its handle formation on decent volume. The group had been beaten and battered since late 2015. We are certainly seeing the group make a turn. IBB is bumping up against some resistance here and will be interesting to see how it reacts.

People will continue to hate this rally. 2008 and 2009 really did a number on people. Stick with the trend.

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