For those who pay attention and need to consume the noise are concerned with the global macro picture. Tariffs are the main topic this week with many concerned over trade wars and costs of goods sold. All we care about is price and nothing more. Sure, cocktail parties it is nice to know what is going on in the world. However, it will do nothing for our trading. It will only hinder our ability to extract gains from this market. It would be nice for the NASDAQ to cool its jets for a few days in tight trading as well as the rest of the market. We can’t seem to have any resemblance of tight trading ranges consolidating these v-shaped moves. There isn’t much we can do about it and therefore we play the cards we are dealt. We’ll continue to grind and take what this market will give us!
Next week we have the Federal Reserve meeting where all signs are pointing to another quarter point rate hike. It has been baked into the market for quite some time and some are looking for a 50-basis point hike. Regardless of what the central bank may do our focus will be how our stocks act and how the market acts overall. Attention will be on if the Fed will hint at how future rate hikes will happen. Odds favor another hike in June, but this may change once we get the FOMC statement.
A check on FANG stocks still has FB lagging the group. NFLX stumbled a bit yesterday, but it was after a report AAPL won’t buy them. NFLX has endured many headlines regarding its doom and it still stands tall. Most likely this will be the same case where the stock simply shrugs it off. AAPL broke above its Jan and Feb high during the session. Volume was “meh” even as the stock moved into all-time territory. GOOGL ran into a bit of trouble with January highs, but a handle here would do the stock some good. A forgotten juggernaut has been MSFT. This stock continues to push higher and is ignored in favor of the FANG stocks. Might as well continue as the stock just moves higher. There are no alarming signs from these stocks whatsoever despite what pundits may think about tariffs.
One stock weighing down the Dow during Monday’s session was BA. BA was down 10 points or nearly 3%. The blue-chip stock is undergoing a bit of distribution after long run but holding its 50-day moving average. It would not be a surprise to see the stock challenge February lows.
Obey your exit strategy and keep your position sizes in check! There is no need to play the hero in this market. We hope you have a great week of trading!
