A lackluster day for the markets after the Fed stated their run-off of their balance sheet would begin relatively soon. While initially the market dropped and popped it was unable to really muster up enough buyers to return to the highs of the session. Small caps nearly gave up all their gains during the session, but held on in the end. Not a terrible session by any stretch. You had IRBT have an outstanding day after earnings. GOOGL was an exception as the stock struggles with its 50-day moving average. Now, prior to 7amEDT futures are pointing to a higher open. We can only trade what is in front of us and so far, we look positive.
FB reaction to earnings was not stellar to start the after-hour session. Since the lows were hit FB reversed course and now is headed higher. FB is going to be quite extended when it opens. If you have been long for any amount of time trimming, taking profits here is not a bad move. It will depend on your trading plan, but for the most part this gap is a gift to those who held through earnings. Never look a gift horse in the mouth. You may always add to the position at its next reasonable buy point. No need to get too greedy here.
BIDU reports earnings after the bell today and this stock has gone nowhere in a long time. Once a darling of growth investors BIDU has been stagnant. Why? We could care less as to the reason, but the stock just has not been able to break through resistance. However, with earnings tonight certainly a possibility the stock is able to punch through resistance and press higher. A stock to watch over the next few days.
We will keep plugging along with this market. We care less what people say or believe this market will do. It simply does not matter. Sure, we are long in the tooth here. We should have a correction and we are in a seasonally weak part of the calendar. Yet, we remain near our highs. We’ll sit back and execute relentlessly while others scramble to save their portfolios.
We hope you have a great day!
