A disappointing NAHB reading couldn’t hold back the Russell 2000 and NASDAQ composite for too long as buyers continue to pile into these two indexes. The S&P 500 did finish in the positive territory, but still lags behind the NASDAQ. Volume was lower on the NASDAQ and higher on the NYSE. A staple of this market has been new highs on light volume and the NASDAQ followed suit today. Leaders continue to act well a bullish sign for this market. However, given the v-shaped recovery off the most recent lows it would be nice for this market to consolidate its gains. We remain in an uptrend and continue to operate as such. There isn’t a reason to fight this trend.
It wouldn’t surprise us to see a few days of selling here shortly. The NASDAQ is now up 8 straight sessions and while we recognize we can continue to push higher. However, it would do this market some good to digest the move over a few days. If this market pushes back towards its upper channel it will like be time to bring back our hedges. We’ll see how this market plays out, but we’ll continue to march along with our process. It is prudent to be prepared for everything knowing your position size, entries, and exits. Everything else is noise, stick with the best and executing your plan.
Earnings season is winding down and it has been a decent earnings season. As we know in 2007 earnings were doing quite well and didn’t give an indication of an impending disaster. It took a few quarters until the market began to unravel. No one knows whether or not earnings will continue to be okay or not. It is best to follow price. Speaking of earnings TSLA is set to report after the bell. The stock has rallied well off its most recent lows destroying bears. We’ll be paying attention to how the stock acts tomorrow.
Stick with the plan and execute!
