Powered by the NASDAQ 100 stocks start the year with fresh new all-time highs. FANGs were more the willing to lead the way. Volume was higher on the session as institutions put money to work. All signs point to higher prices ahead. Energy and Consumer Discretionary led the S&P 500 higher as natural gas prices jumped as the Northeast continues to get pounded with frigid temperatures. Utilities and Real Estate were laggards as fears over higher rates continue to impact both groups. Aside from euphoric type bullish readings from AAII this market wants to move higher. No sense in arguing with this market and its best to keep hang in with the trend.
First and foremost we hope our subscribers and those who read this commentary had a safe and enjoyable New Year’s holiday. We are certainly looking forward to another great year 2018. After a huge year in 2017 history points to this stock market continuing its trend higher. This does NOT mean we cannot have a rough patch where the market correction 10-15%. It has been awhile since we have seen such a correction, but it isn’t out of the question it may occur. Even if we do see a correction it will likely not spell the end of new highs.
FANGs had a great session today. FB bounced off its 50-day moving average nicely. Volume was above average. No need to argue with that kind of session. AAPL found support at its 50-day too, but volume was below average. AMZN played nicely in the sand box continuing its sideways action. GOOGL and NFLX had themselves a session too. All are poised to continue their uptrends and bodes well for the overall market itself.
We are not about to give up on this market like others may have. We have our exits in place and are ready for whatever this market wants to give us. If we are to roll over we have our stops. Otherwise, we’ll continue to operate under this uptrend. All systems are a go for another solid 2018.
