Despite a seemingly solid jobs report sellers took to the market slamming it hard. Volume was up big on Friday as sellers were eager to dump stock. Today’s session was complete opposite where selling did not follow through and volume slumped. AAPL had a big day as the company announced its much anticipated watch. The good thing we saw today from this market was the lack of follow through from sellers. If selling does resume, our recent lows are breached is something we will take note and act accordingly. Until then, this market is in position to resume its march towards highs.
Overall today was a pretty decent session despite the lack of volume. Mondays are notorious for light volume trading sessions. There were quite a few noticeable tails including NFLX, FB, and AMZN. All three stocks were having poor sessions until the end of the day where support came in. AAPL had a volatile session, but was able to recover after stumbling hard after releasing its watch. TSLA and INTC are rolling over where TSLA has some serious downside volume. They are certainly in danger in the short-term here. The last time we saw two stocks in danger were NFLX and AMZN. We know how that turned out.
While today’s session was positive we did noticed weakness in HYG and JNK today. Big volume has come in on the downside for both ETFs. Given the rise in the 10 year yields a little pressure on the High Yield market is not a surprise. We will have to keep an eye on these two as we move forward. Investment grade debt is faring as well either. TLT, TMF, and AGG are all struggling. Is the Federal Reserve going to raise rates? Price will likely let us know well before we get any hint out of the Federal Reserve. It is all about price and price only and we are seeing some pressure.
Another item to keep an eye on is the continued strength in the US Dollar. EURUSD and USDJPY continue to be the currency pairs driving the US Dollar higher. How much will a strong dollar hurt US multinationals? Many are citing currency weakness as a big weight around earnings and will continue to do so. Price will sort out this situation and we will simply follow along.
Today’s session was a good start to the week avoiding further selling. Now we need to see some follow through on today’s buying.
