Early morning strength was met with selling, but an afternoon rally stemmed the selling. Volume on the exchanges was mixed with NYSE volume higher and NASDAQ lower. While the S&P 500 was technically a day of distribution we are not going to put much weight behind it. The move off the lows on the session was big enough to negate the selling we saw just after 10am. It was nice to see the market pull up from the lows in a sign of support. We still like the current consolidation a few more days to digest the current rally off October lows. Another decent day of market consolidation, but we do need more of it to sustain a move higher.
Certainly around political circles mid-term elections were the buzz. It does appear to be a bit insane to continue to go back and forth between Republicans and Democrats. However, it does not stop people from continuing to vote for either party. We are political agnostic as it does not help our trading. What we want to focus on is the price action of individual stocks and the market. Anything else is truly just noise to us and will only eat into our gains. There is nothing worse than having your gains eaten away because you thought you were smarter than the market.
Friday’s job report will be fun to see the numbers pour in. Right now expectations are for jobs to have grown by 232,000 and unemployment rate holding steady at 5.9%. Was October a great month for jobs or not? Who knows and if anyone tells you know how the market will react they are full of shit. Right now the trend is up and given the current market conditions we expect this uptrend to continue a bit longer. We will continue to adhere to our process and allow our signals to alert us to act. There is no need to try and out think this market.
There were a few stocks posting earnings after the market close getting hit. One being FEYE losing almost 23% of its value at one point during the after-hours session. It appeared that 26.80 level was a solid support level for the stock. Continue to watch for earnings as they do provide opportunities for us.
Crude oil continues to slide lower as many blame a supply glut as the source of the selling. What about a demand problem? Who knows and who cares. The trend is lower and as long as it stays that way lower prices are ahead.
A decent day for the markets and we would like to see a bit more consolidation to push this market higher.
