The official start of summer isn’t for a few weeks, but the light volume theme continues as volume underwhelms despite the NYSE, Dow Jones Industrial Average, and S&P 500 finishing higher. Bonds sold off pushing the 10 year Treasury yield back above 2.5%. What we found interesting was the multiple revisions the ISM manufacturing survey underwent. How do you get this wrong? Despite the multiple revisions we were able to climb off the lows of the session. The Dow led the way on the back of CAT and UTX. This market isn’t going to give up gains very easily and the lack of volatility and volume it is going to try to lure you to sleep. Do not be fooled and use the situation as an opportunity to get ahead while others worry about the conditions other than price. A mixed start to the week, but at least we got moving.
Later in the week we’ll get the all-important Jobs report from the Bureau of Labor. We are so excited, no we aren’t. However, most of the commentary you will hear is regarding how the Federal Reserve will act after the figures are released. A few are calling for sub-6% reading on unemployment as early as July. When this target is hit what will the Federal Reserve do? What happens if the hedonic laced CPI figure begins to get out of hand? All these questions will be answered at some point, but not by us. The market will simply adjust and move forward. Those who will be left behind will be those who chose not to follow the market and Big Wave Trading. Our time-tested process will give you the edge you need to exceed the majority of traders who are in the market.
An interesting google Trends search revealed nothing new, but is an interesting tool to use. We did a few keyword searches to show how often people are searching various topics. As far as a recession or stock market crash folks really aren’t worried:
And Value stocks continue to be searched more than Growth and Momentum stocks:
The lack of search for a catastrophe and given the low levels of VIX does not necessarily scream for something to happen for our current market. These conditions have been known to last awhile and it is anyone’s guess what will happen next. Our goal is not to pick the exact top, but whatever we are dealt we maximize our opportunity. At some point something will change and the market will give its clues well in advance. As long as you stick with Big Wave Trading you will be successful.
