Overnight Asian markets did not act well as Indonesia and India are looking quite weak. The Nikkei is looking rather weak as well despite the Japanese Central Bank pumping trillions upon trillions into the Japanese market. State side the market bounced off short-term oversold conditions. Today’s rally wasn’t too much of a surprise given the selling done over the prior week. The rally today marks Day 1 of an attempted market rally, but it come on the back of light volume. Preliminary volume shows turnover is behind Monday’s pace. Not the type of conviction you want to see from a market looking to bounce. Stick with your plan of attack and pay attention to your rules no matter what your opening of the market may or may not be.
There were a few stocks moving today, but really not much to get too excited over. Many pundits are still looking to the Federal Reserve to support the equity markets into year-end. Chew on that for a moment. A strategy completely reliant on someone else all wrapped up in a blanket of hope. Does this sound like a recipe for success? Ignoring the financial media and market opinions by sticking with price action is the best course to capitalizing on the market’s movement. Remember when all those experts were picking a top in May/June? How wrong were they? Just recently, many pundits came out on Friday beating their chests over a new correction. No one knows the future, have a plan and attack this market.
Fortunately for those who pay attention to leading stocks are enjoying gains in NFLX, GMCR, and NTES today. Imagine if you got uber bearish and went to cash even short this market? You would be missing out on some gains. While our opinion what the Federal Reserve has and continues to do to savers and pensioners is one thing. However, our actions in the market only rely on price. If you are unable to separate the two you will have subpar gains. Stick with Big Wave Trading.
Tomorrow’s release of the FOMC meeting minutes should ruffle the market’s feathers. Which way the market will go is a toss up. The market will move and we’ll react. Cut your losses and ride your winners.
