Volume was up across the board as the NASDAQ 100 led the way for major market indexes. It was nice to see volume jump along with price. However, the downside was the lack of leadership from the Russell 2000 as Small Caps have been a bit shunned for a few weeks. NYSE saw advancers led decliners by a 2 to 1 margin during Wednesday’s session. This market is and will continue to be a grind and we must not lose interest. Mastering the art of the mundane will serve you will in this market type of market. Far too often we see traders give up because they simply cannot stick with the grind. We cannot think of anything we would rather being doing and why Big Wave Trading has been around since 2007. Managing your risk here remains import and price will always be our number one indicator. It appears we are back on for more market highs.
The NASDAQ 100 was certainly helped by TTWO, MELI, NVDA, and NTES. However, the big boys GOOGL and MSFT provided extra juice during Wednesday’s session. AMZN and AAPL continue to hang around below their respective 200-day moving averages, but do not count them out just yet. NFLX and FB are poised to move higher. Perhaps a chance FAANG stocks make a comeback to former glory? At this stage it is become more of a possibility despite well-known stock traders shrugging them off. We cannot say we blame them one bit and as always price rules. These former leaders may very reverse lower and disappointing many along the way. It is a good sign to see these giants waking up.
Even with stocks moving higher this week sentiment has evened out between the Bulls and the Bears. Just that phrase reminds us of a show on Saturdays. Is it even on any more? Before we digress further the number of Bulls dropped week over week to 32.42% while Bears jump to 31.06%. Not a huge surprise by any stretch of the imagination, but it appears we will continue to see middle of the road type figures from the AAII survey. Individual investors simply are not going to have conviction one way or another in an extreme way. In the meantime, we will let others battle out where the market is going while we simply follow price.
This week has been a good one and we hope you have had a successful one up to this point. We urge you to remain vigilant with your risk management process! Enjoy Thursday and Friday trading sessions!
