The first day of the third quarter started with solid gains. Greece remains a focal point for CNBC and other media outlets. Is there or isn’t there an agreement in place? The market has essentially recaptured the losses from Monday’s session and we are back where we have started. Sunday’s referendum will certainly create some waves, but for now we are in limbo. We do have quite a few stocks showing some great outperformance and are of high quality. It gives us an indication this market can push higher. Volume was lower on the session, but the first day of the month typically is lighter than the previous session. All eyes continue to be pointed at the Greece situation and the market remains in limbo.
Not since the mid-90s has volatility been so light. Many thought post-QE the market will head into higher than normal. Yet, we have seen the opposite. Why thinking you know how the market will react is very dangerous and costly game to play. Same goes for the direction of the market. Stick with a time-tested program. Stick with Big Wave Trading.
Due to Friday’s holiday the Jobs number is released tomorrow at 830am. The #NFPGuesses are just that: guesses! While we have no skin in the game many are going to be paying close attention due to the possibility the Fed could raise rates. The data dependent Fed will certainly view a better than expected Jobs numbers as a signal they can raise rates. However, does this guarantee the market moves lower? Many are expecting it, but they tend to forget what happened when the Fed raised rates beginning during the second quarter of 2004.
Steady as she goes here. Continue to manage risk and while we have a long bias here we will exit in accordance with our trading rules. More to come tomorrow so stay tuned!
