Economic data continues to be largely ignored as we did see a mix of economic data. Housing appears to have been better than expected while durable goods failed to meet expectations. Futures simply ignored the news and marched forward. Early morning gains were quickly erased as sellers hit the market early on. The selling would not last long as the market was able to climb back and close near the highs of the session. Greece remains in the news, but the market is trading like it simply does not care about Greece. Besides, when was the last time we did not see something get bailed out? In the end, price is the only thing that matters and it continues to indicate higher prices are on their way. Despite what bears may say this up trend remains in-tact.
Gains are not that outstanding, but there are pockets of strength producing gains. The Dow Jones Industrial average continues to trade within its range started at the beginning March. Where the strength lies is with Small Caps and NASDAQ. FB followed-through after breaking out yesterday. LULU broke out of a small base. DNKN broke out of a two month base. If this market was going to hell in a hand basket why would we be seeing these breakouts? We would not be. Quit paying attention to the talking heads in the financial media and pay attention to price.
At this point it certainly appears the market believes Greece is going to be bailed out. We could be wrong, but when was the last time a bailout or deal did not come through? Not since Lehman have we seen a deal not come through in the final moments. Remember the fiscal cliff? A deal was made. Whether or not this new deal will be a good thing for Greece does not really matter. There are too many issues with Greece to actually fix it would be far scarier than saddling them with more debt to make appear everything is okay. Before we go down a rat’s hole we bring it back to the most important thing: price. In the end, price rules all and our opinion is worthless.
It is hard to argue with all-time high prices. Sure, bears will have a field day with the issues we have across the globe. The only problem is price continue to proves them wrong. Stick with Big Wave Trading and we will help you boost your trading performance.
