Coming off a long weekend after the Easter Holiday traders had a chance to digest a very disappointing non-farm payroll figures. Today’s ISM Non-Manufacturing figure came in as expected, but failed to really wow from an economic standpoint. Prior to the 10am release of the ISM figure buyers were out in full force buying the dip. Just but the dip. Volume snuck higher across the board in a show of institutional support. Energy and utilities led the market higher as both beaten up groups now are showing a lot of love. Small caps lagged the session as the large cap indexes play catch up. Not a bad session at all to kick off the week. A little follow-through here will go a long way.
Given the reaction by today’s session after a near terrible report tells us something very profound. The Federal Reserve is not about to raise rates any time soon. The weakness in economic data has been very disappointing and does not warrant a rate hike. 92 million Americans are out of work and it is not improving at the moment. Not to mention the US Treasury would have a hard time servicing the debt currently incurred by the US Treasury leaves very little wiggle room when it comes to rate hikes. The Federal Reserve is not about to risk ruining the US Treasury and definitely not sink the US Stock market. The Federal Reserve tailwind is not about to let up any time soon.
There are plenty of stocks looking great. EPAM is a stock we have been watching intraday for a week and today it broke out with heavy turnover. Energy and Utilities led the entire market and there isn’t a shortage of names in energy names. TSLA is a favorite of our chat room and today’s move was a welcomed sign of support. Solar continues to be a focus of ours with leading candidates like FSLR and ENPH. ORA has been on a non-stop tear and if we see the stock consolidate into a buyable pattern we would certainly hop aboard. We continue to find new longs. To take advantage head over to our register page and SIGN UP!
This Wednesday we get the meeting minutes from the previous Federal Reserve meeting minutes. I am sure we will see the normal pundits fall all over themselves to figure out what the Fed might do. However, it is clear to us the interest rate environment is going to stay like it is now. We may not turn into Japan, but we are going to follow the same policy path.
All this is very helpful for stock market to continue its march higher. Stay with Big Wave trading and make sure to sign up to receive special offers. We extended our April Fools deal through this Friday. Don’t be a fool and miss out.
Cut your losses short and ride your winners.
