It was clear from the start traders were waiting on the FOMC meeting minutes. Volume was running much lower from Friday’s pace. The housing market continues to receive bad news from Mortgage Applications as once again they fell 4% week over week. Higher rates have certainly halted the growth in mortgage applicants. Upon the release of the FOMC meetings the market went haywire. Initially, it appeared the market would catch a bid and move higher. However, the market gods would not have any of it and quickly pushed the rally back. Only a late day push helped the market close near the highs of the session. The market still is without a confirmation of a rally, but we continue to push higher.
The NASDAQ is within striking distance of May’s high set on the 22nd of May. Six week’s have passed and this market has been able to rebound after the initial fears over the Fed potentially tapering. We’ll have one more Non-Farm Payroll figure to digest prior to the next FOMC meeting. Like always it will be the most important jobs report known to the history of man. Until then, we’ll continue to ride this market until we get signals otherwise. It does not pay to fight the trend.
One potential disaster for the economy is the rising oil prices. We are knee deep into summer and we are seeing Crude moving higher. While it is clear being long USO is thing place to be it will certainly hurt those who use gasoline as a fuel. Those who drive a TSLA can laugh, but who will be laughing when at 200 miles you run out of battery life? TSLA vehicles are stunning vehicles and when Consumer Reports says they are the best ever tested you should listen.
Stick to the plan. Ride your winners and cut your losers.
