From the Trading Desk
The morning did not get off to a great start with disappointing economic data hitting the market. Weak jobless claims and a Philadelphia Fed manufacturing index showed how disappointing the economy continues to be. By mid-day it appeared the market simply didn’t care too much about the weak economic data. Just as new highs were [...]
TSLA move this morning certainly gives longs a place to take profits off the table. The stock can continue to push higher, but this morning’s pop is a great place to book gains. Solid run.
A late day rally helps push the markets higher as volume expands across the board. AAPL and GOOG have completely gone in different directions as GOOG hit a new high as AAPL dropped below its 50 day moving average. Many will search for the “why” AAPL dropped, but all that matters is that it did [...]
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Ben Bernanke Delivers as the NASDAQ Reclaims 2007 Highs
The early going was very rocky as sellers took to the market taking down equity prices prior to the 12:30pm EST policy statement and 2:15pm EST press conference. By 11:00am EST stocks hit the lows of the day and began to trend higher. Leadership took a hit prior to the statement as investors were timid after NFLX earnings hinting the market was going to sell-off. However, stocks began to push higher after the release of the statement and again at the end of the news conference. Growth stocks, leadership type stocks were able to turn around and end on a solid note. Today’s market action reaffirms the market rally and higher prices are on their way.
Earnings season has been a good one. We are seeing earnings continuing to beat expectations. Now we are seeing a few hiccups with NFLX and CMG, but these two stocks are still holding key moving averages. NFLX fundamental story is still there, they are the leader in their space. However, we need price and volume to confirm their story. These two stocks have their “story” intact, but if they roll over on volume it will spark a bigger downside. Given the recent action, it appears they’ll make another run at higher prices. Let price and volume confirm your view.
It is interesting to hear all the banter regarding the Fed and its policies. Continuing to print money with no end is certainly a recipe for disaster. However, could the Fed pull out its monetary easing? Sure, but who knows when they’ll stop their money printing scheme? Successful stock market trading does not rely on “opinion,” but on following the price and volume action. Discipline is paramount and this includes the ability to cut your losses short and letting your winners run. The hardest part of stock market trading is the ability to hold onto winners. Often, many will sell out of winners too quickly “locking in gains” and missing big moves. Learn how to hold and your results will improve tremendously.
We continue to get onto leaders and we are seeing more looking like they are about to breakout. Get on board.
Cut your losses short!