What a fantastic way to kick off the week of trading. Solid gains across the board were a good sign for this market as we did not collapse through February lows. Volume was light, but par for the course for a Monday. It would have been nice to see volume flood into the market. However, we can only trade what is in front of us. For now, we have a new rally attempt developing and now we will wait to see if we can see this market follow-through on Monday’s gains. It would be great to see volatility slide and tight closes over the next few days. Patience continues to be a virtue in this market and playing hero ball will only push you to overtrade churning your account lower. Stay with the process and let this market do want it wants.
Trade war fears are easing, but there will be an underlying fear until an agreement is reached. Will there be one it is anyone’s guess. Our economic macro picture continues to be one that is a mess and has been since 2009. We aren’t about to get into if our path we are on was right or wrong, but certainly have presented an interesting problem for those who want to figure this out. The FOMC continues to be on a path of higher rates and odds of a rate hike before summer sits at 79.4%. After June the next hike is up in the air. We’d expect the macro picture to remain in flux for the time being and our focus will solely be on our stocks and how prices unfold.
Monday’s hiccup mid-day started with FB and another inquiry into its handling of private data. Massive volume hit FB as the stock received a ton of a support at $150. FB will be an interesting stock over the next few months to see if this recent issue will end its tremendous run. GOOGL also collects a ton of private data. The stock fell to its 200 day, but like FB received support. AMZN, NFLX, AAPL, and MSFT continue to act well and should help this market stabilize. Keep an eye out.
We hope your trading week goes well. Stay patient and do not play hero ball.
