From the Trading Desk

Stocks Continue to Hold in Tight Trading; Utilities Lead

This market simply does not have the ability to move dramatically in one direction or another. The Dow continued its march onward to new all-time highs. Volume was mixed with NASDAQ volume inching higher on the session. We have the same ole story with this market. Not much has changed and until things do we’ll remain on our current course of action. We will say it does not make for very interesting markets. Volatility usually helps and certainly produces outsized gains. Remain the course and continue to be vigilant with your stops.

The lack of volatility sure makes it a bit more difficult to write commentary daily. Sure, if we wanted to talk about politics there is plenty of fodder there. However, we are only concerned with what grows our portfolio. Price matters and that is it. Once we understand what matters the next step is to have a robust money management system. Most do not have one and not having a system is usually what dooms their portfolio. We stress the importance of having proper position sizing as well an exit strategy. It is the only way to sustain success in this market.

Earnings season is just heating up and so far, it has just been quiet. NFLX really didn’t provide much excitement as the stock closed in the lower half of its range. We will say, GS had a rough day as it produced outside reversal after it posted earnings. Not what you want to see post earnings. C is still struggling while BAC and JPM are just coming off their highs. XLF is still building a handle here, but it isn’t outstanding. IBB on the other hand is doing a bit better, but Monday’s session does blemish the chart a bit. More to come from biotechs as earnings approach. XLU and XLRE have rallied a bit despite the threat of another rate hike in December. Both groups aren’t known to produce massive winners, but certainly impact the overall market. Lastly, XLE is holding up well. Volume is on the decline as the ETF moves sideways. Perhaps the threat of war is keeping the group afloat, who knows?

Wednesday is a new day with endless possibilities. We hope you have a great day and best of luck with your trading

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