From the Trading Desk

Stocks Continue with Gains

Wednesday’s action has been much of the same. Low volatility continues with gains. Commentary is a little late and we have the luxury of seeing futures down more than we have seen recently. Perhaps volatility will finally creep in and we can finally get a meaningful correction. We love uptrends, but past history prior to 2008 had shown deep corrections within large uptrends were necessary to produce outsized gains. In today’s market we simply have yet to have these corrections and while we will not hold our breath for one it would be nice to see a solid correction. This uptrend has been good and we have had our fair share of gains. We have our stops in place and position sizes optimized. If we are to finally see a correction we are prepared. Are you?

Volume was lower on the session Wednesday, but this entire uptrend volume really hasn’t mattered. Valuations have yet to matter too. Price is what is important to us as we manage our portfolios. Our risk management process really truly is what allows us to maximize our gains. Most ignore it and suffer grave consequences! Avoid the pitfalls of not having a risk management process by joining Big Wave Trading.

Let’s see how this market plays out there. I am sure there will be plenty of bulls fleeing the uptrend’s ship with a little selling. It would be interesting to see what a little volatility would do. We would certainly welcome it as we approach December and when the Fed will likely raise rates again. Odds are 92.3% according to market pricing. We do not focus on whether they should or should not. What we’ll care about is how the market reacts via price before and after. We’ll let the pundits battle it out and leave what matters to us.

We wish you the best of luck with your trading today. Let’s see how this market unfolds as we get a little hiccup to start Thursday’s trading.

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