A solid start to the week with gains across the board as the Trump Bump continues to grow. Volume was lower across the board, but typical for a Monday. We continue to see a healthy market despite what many may think. The NASDAQ continues to obey its 10-day moving average. A big move today by financials shows buyers are still supporting the sector even after its large move after the November election. The only group that seems to be having a difficult time has been small cap stocks. Despite closing higher, the Russell 2000 could not close above its open. Even with small caps lagging we still have a decent upward trend. Stick with the trend by riding it for long as you can.
Even utilities were happy to join the party today. Despite rates moving higher buyers found their way into the sector today. The group is some ways from its 2016 highs, but well on its way to regain those highs. Even with the 10-year Treasury yields nearing 2.5% there is still some hunting for yield. A curious development in yield curve land is the narrowing of the spread between the 7s and 10s. Another group enjoying this run is the industrials with XLI hitting another new high today. Majority of the S&P sector ETFs are nearing highs. Not a bad time to be fully invested in the market.
As long as you obey your exit signals you have nothing to worry about. Stick with the trend and stick with Big Wave Trading!
