Shaking off early losses the market rebounded with the Dow Jones Industrial Average took the lead. Finishing higher by 1.37% the Dow was led by CAT and BA. Tariff talk dominated the headlines, but stocks seem to ignore the noise and push forward. Volume was lower across the board despite the big gains from the major market indexes. Small cap stocks lagged on the session, but have been a solid performer the last three days. At this point, we are not totally out of the woods just yet. The NASDAQ is the clear winner, but the other major market indexes are still not out of the woods. We will certainly welcome more constructive action. We have new longs popping up hinting this market wants to move higher. We’ll take it one step at a time.
The plethora of new longs we have seen over the past few sessions is certainly a good starting point. Obviously, these need to hold and show positive action. Stops are in place in the event we have any hiccups. A key to our success has nothing to do with being a guru or a genius. We follow simple rules and execute with flawless precision. Most do not have the discipline to stick with the process. Once you begin to ignore the noise and start following Big Wave Trading you will start to see results.
Most new traders have unrealistic expectations of how much money they can make from the stock market. We have been trading for 20 years and have seen majority of traders think they can double their money in just a month or two. Unfortunately, many of these traders either burn out or lose all their money. Avoid others’ pitfalls and start improving your trading acumen.
No other major market index is above their 50 day moving average than the NASDAQ. Today’s session may send the S&P 500, Dow Jones Industrial Average, and Russell 2000 above their respective 50-days. We will see, but it will be important for these indexes to recapture this critical moving average and hold it. Any distribution here will certainly be an issue and if we see a cluster of distribution days February lows will likely fall. Be prepared for anything. Keep an open mind and follow the process.
We hope you have a tremendous week of trading!
