From the Trading Desk

NASDAQ Slides after Opening at All-Time High

Yesterday’s FOMC day was not what we would consider a normal FOMC day. Volatility simply did not come to fruition after the central bank released its statement. From the open stocks opened strong, but buyers simply couldn’t support the all-time highs. Volume on the exchanges ticked higher and it’s important as Tuesday’s volume included end-of-the-month rebalancing. It is not easy eclipsing that kind of volume. Was Wednesday’s action the start of something more sinister? We’ll leave it up to those who like to bloviate. What we can do now is to tighten up our stops and be vigilant with our signals. There is no need to overcomplicate matters, but we do need to be aware of the price action around us.

Many will be quick to jump off the stock market’s bandwagon here despite its resiliency. We are not blind to the fact we may very well finally get a correction. But, we are not going to dump everything and go short. We will move swiftly in accordance to our methodology. This market may very well pivot here and push higher. No one knows what the future will bring. Focus on controlling risk through exits and position sizing. Getting in is easy it is getting out that is hard. Most will get in and will pray their position will go higher. Not having a plan is a disaster waiting to happen.

FB reported earnings after-hours on Wednesday and is currently trading lower. AAPL reports after the bell. So far Earnings have been a pretty good in terms of reaction. AMZN, MSFT, and GOOGL were big winners last week pushing the NASDAQ higher. Will AAPL do the same tonight?

We hope you have a great day of trading today. Keep your losses small and focus on what truly matters: Price.

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