Overnight North Korean authorities confirmed they had successfully tested a hydrogen bomb. Whether or not we can believe they were able to the markets did not take kindly to the news. US futures were hit hard and continue to head lower into the US open. ISM non-manufacturing index missed its market, but remain in expansion. The real headlines would come later with the release of the FOMC meeting minutes from their last meeting. Out of the gate buyers were able to support the market pushing the market to its highs of the session. Unable to continue, sellers returned pushing the market to new lows after the release of the Federal Reserve minutes. A late day rally did help push the market back near the mid-point of the session. Unfortunately, the damage has been done and we continue to see overall market weakness and expect it to continue.
There were a few intraday trades to be had today. EARS was certainly in play as well as EMAN. Given the overall sentiment in the market our end of day trades will be few and far between for the near term. The intraday trades offer the opportunity to add gains to our portfolio. Only way to get these stocks is to join the service. Get a platinum subscription to gain access to our chat.
For quite some time a lot of traders have been looking for a “real” market correction. A quick 8-10% correction with v-shaped moves is not a real correction allowing sound base structures to form. Pre-2008 we had plenty of patterns. However, as we have adapted these patterns are much more prone to failure. Adjust we did and while we always maintain a strict money management system we must be able to adapt to the market we are given. Perhaps, with the Fed finally moving away from ZIRP and QE over a year ago our markets can return to a more normal state. Let’s not forget HFT does pose a risk and remains a thorn in many traders’ side. Overall, let’s see with the removal of ZIRP if the markets return to a more normal state.
We continue to operate with a heavy cash position and await a better market. The best time to strike is when the iron is hot. We have a cold market and we will do more harm than good if we decide to strike here. Stay patient and wait for the proper time to step in.
