Overall, a very dull session as the market sees the lightest trading day since August. Not a real surprise as we do see light volume on Mondays. Will it be significant is anyone’s best guess. We definitely would like to see the market consolidate in a tight manner for the next few weeks. February is typically never a great month for the market, but a little consolidation would go a long way for this market. Our focus will and always remains on the price action of this market and its stocks. Worrying about events that may or may not happen will only lead you to despair. This market is still in relatively good position to push higher, but we must remain patient and let the market unfold.
Overnight it appears there may be a deal to avoid another government shutdown. Futures are pointing to a higher open and it will be interesting to see how this market plays out. While we want a period of consolidation it does not mean we are trading for one. There is always a possibility this market continues to rocket higher. One thing we do not want to miss out on is gains. We have our stops in place if positions go against us. While our number one rule is to cut losses the next one would be missing out on gains. It is a delicate balance, but with a solid plan in place we can take advantage of whatever the market throws at us.
Perhaps a good sign for this market to continue to push higher is the amount of new long signals we are getting. If we were about to roll over we would not be seeing this many new long signals. This is not a fool proof approach, but certainly is a very good sign. Of course, we will have our position sizes on point as well as our exit strategy in place. If this market continues its march higher we will be well positioned to take advantage. We will take the market as it comes and whatever it might be we’ll be ready.
We continue to see this market as a continuous grind. It is worth mentioning again is you have to be in love with the grind. If you are not in love with the grind it will be a problem with you reaching peak potential with your trading. Of course, we can help. However, you must have the discipline to make it work. This is not an easy path to riches.
We hope you have a great day and week of trading!
