After last week’s move in stocks the market pulled in on higher volume. It comes to no surprise the day after Labor Day volume would resume normal level. Summers typically feature much lighter volume than you would see the entire year. We still have the NASDAQ and S&P 500 knocking on all-time highs and the Dow still waiting to break through its old January high set on the 26th. Given all the tariff talk it is no wonder blue chip global companies are finding it difficult to move the index higher. Despite all the rhetoric this market is still setup quite nicely to continue to march higher. Maybe it is the trade deals or tax cuts, but all we know is this market is in an uptrend. Concerning ourselves with any other matter other than price is pure foolishness. Stick with Big Wave Trading as we ride this wave higher.
VZ had a tough day on Tuesday as the stock slide more than 2%. The stock weighed down the entire telecom sector. Telecom was the worst performing sector in the S&P 500. Utilities, Financials, and Consumer Discretionary sectors were the lone sectors escaping Tuesday with gains.
AMZN hit another record high sending the stock’s valuation above $1 Trillion dollars during Tuesday’s trading session. AAPL is the only other stock to reach the trillion dollar club. The stock is nowhere near any reasonable buy point. You would certainly be chasing the stock higher. There are always those who want to chase stocks, but also shorts who cannot take the pain of the losses anymore. No matter what the narrative you must always obey price. As AMZN points out with its rise in share price it pays to stick with the trend.
Friday’s session will kick off with the August jobs report. The market is expecting the jobs report to show a rise of 195,000 jobs in the month of August. Unemployment is set to tick down to 3.8% from 3.9% in July. It would be nice to see average hourly earnings to grow more than expected. The market will likely quickly forget how good or bad the number is and goes on its merry way. Gamblers will do their best to guess which way the market will move and hope they walk away with gains. Neither behavior is conducive to long-term success in the market. We stick with the prevailing trend with a sound money management process. Any other way would not have us in this market trading for very long.
We hope you had a great long weekend and wish you great luck this week.
