The S&P 500 notched a minor day of distribution as the NASDAQ was able to squeeze out a small gain. Volume rose on the day from Monday’s depressed levels. All eyes were looking at TSLA and its earnings release at the close of the session. On the day, the action wasn’t too shabby with the market lifting off the morning lows. There are buyers waiting to support the market at the lows and it does give the impression any downside will be met with heavy buying. Even if it is the Federal Reserve we are still seeing prices move higher. Our trend remains and we continue to ride this market wave higher.
Elon Musk and TSLA stock have been the talk of the town. Even SCTY another company headed by Musk trades in sympathy with TSLA. The stock has been consolidating nicely, but the true test would be earnings. Unfortunately, for the moment stock bulls got hit pretty hard with the stock falling 21 points in the after-hours session. I could make up a very nice story to tell you why it fell, but would it really matter? Trend followers have their system and if there are any price triggers we’ll go with them. It wasn’t too long ago the stock was sitting at $40 and now at $155 many are angry at missing the move. Stay with the trend and leave the noise to others.
Much is being made over bubbles and maybe the only bubble out there is those talking about bubbles. Sure, the Federal Reserve’s balance sheet is well above the nose bleed levels, but is that any reason for this market to go lower? Simply printing currency has never really been a long-term success story for any currency, but does anyone have the timing down? You can cry wolf all you want, but when the wolf shows up are you prepared? The debate may rage on regarding the Federal Reserve’s actions, but we’ll simply stick with price and follow it. In the end, price determines the score.
Our trend remains and we remain on top of it. Cut those losses and ride your winners.
