The market inched higher after coming off the Father’s Day weekend. There were some nice breakouts on the day including TSLA and SPWR. Both stocks did so in excellent volume. From the get-go the market received positive economic data this morning, but shortly after the ending of the Federal Reserve’s Permanent Open Market Operations (POMO) stocks began to fall. Just before noon time buyers were able to wrestle the reigns away from sellers and push stocks back up to the highs of the session. A solid close to boot helped put a positive spin on the day for those who are long this market.
Bears were thrown a bone for just over an hour, but this market is simply too strong and sellers are too weak. Stocks closed near the high of the day with the Russell 2000 leading and we definitely like it when the Russell 2000 leads the market higher. While volume ended mixed, with NYSE volume higher and NASDAQ lower, it was still a solid effort. It is hard to argue with the market’s trend and at the moment. It is higher. Don’t fight it.
This week is an interesting week with it being options expiry and we get a Federal Reserve meeting. The Fed will conclude its meeting Wednesday with a policy statement as well as a press conference by the Chairwoman. Janet Yellen will take questions and is likely to get the market to become volatile. Odds aren’t in favor of anything to change as the conditions haven’t drastically worsened or improved significantly. Many are looking for steady as you go from the Fed. We on the other hand know at this point the yield curve is not inverted and QE is still going. The market trend as it stands now is pointed higher. There is no sense in getting off this trend until we have evidence we should do so.
There isn’t much else to really write about other than we are in an uptrend. Have you missed this upside? We see so many traders fight the trend and lose their stake. Jump aboard with Big Wave Trading and allow yourself to succeed over the long-term stock market. We have succeeded since 2006 by having a sound process and a focus on the long-term success. We aren’t day traders and if you want to build your wealth over the long-term we are here for you. Most who are day traders think market riches come instantly. It does not. Build a portfolio of success with Big Wave Trading.
Don’t fight the trend, ride it.
