Positive economic data helped push stocks higher during the early morning session, but it wouldn’t be too long before sellers would take over. As the market hit its high for the day sellers took over pushing stocks lower in quick fashion. NYSE volume was running lower showing sellers didn’t have much juice, but the NASDAQ had been running higher. Sellers sold after the initial reaction to a better than expected Consumer Confidence number. The market did find support and those lows were held for the remainder of the day. Once again, the market found its way higher as buyers stepped up pushing the market to close higher.
Many continue to doubt this market as they see what is happening in our economy and the world economy. Greece, Portugal, Spain, and Ireland are certainly in deep trouble as their fiscal deficits due to entitlement program spending has crippled their economies. The United States appeared to be headed down that path, but we aren’t quite at the debt levels those four European countries are at. Prolonged deficit spending, like seen in the European countries will be suffering for quite some time. The moral of the story here, do not depend on the government to provide for you as if that government fails you will be left out in the cold. Precisely why you need Big Wave Trading and our disciplined approach to investing will secure your future by taking it into your own hands.
Regardless if you are a conservative, liberal, centrist, or libertarian the market simply doesn’t care and will move along accordingly. Right now we continue to see positive action in our leaders as well as the markets itself. Since our February 11th follow through we have been on top of this rally and at the moment we are not seeing classic signs of a top. Until our leaders begin to roll over there isn’t a reason to think we are going to fall apart.
Many are thinking sellers will come in tomorrow as the 1st quarter of 2010 comes to a close. Perhaps we may see a bit of selling, but no one is 100% and predicting market action is simply gambling. Besides, we aren’t day traders nor do we want to make a trade simply for a month end or quarter end. Our stocks aren’t signaling for us to sell. Therefore, we have no reason to sell on a “hunch.” Essentially, we aren’t going to be scared out of a position simply because a month end is arriving.
If you have a stock that is up 20-30% sure, it is ok to take some profits, but to sell out is simply trading scared and an amateur move. Do not make the amateur mistake of dropping a position because you “feel” the market is going to move one way or another without solid evidence from how the market is behaving.
Our uptrend remains and we’ll continue to push forward.
