NYSE volume was higher on Friday as the Dow and S&P 500 ended the session with small losses. The NASDAQ and Russell 2000 each ended the day with heavier losses, but volume fell on the NASDAQ Stock Exchange avoiding a day of distribution. Utilities continue to shine as falling yields have pushed yield seeking investors to the group. It was a nice consolidation week for stocks as we will look for buyers to step in and begin to push stock back to all-time highs. It goes without saying if we roll over our exit strategy will have us protected from heavy losses. With that said, it is hard to imagine with the price action right now we’ll see any downside. Position sizing and exits are the reason we can ignore the noise and fear many traders have while in the market. Avoid the fear and stick with Big Wave Trading!
We could live with a few more days of consolidation, but we will need to see stocks push higher once again. There is positive momentum given the Fed will step in if the economy stutters due to Tariffs or any other reason. You should NOT fight the fed and easing is a positive, typically for the stock market. The headwinds we will face will be seasonality as Summer historically has been a rough stretch for the stock market. More recent history however, summer trading has not been what it has in the past. Anything is possible and why you must keep an open mind and focus on what truly matters: PRICE. Everything else is simply noise and not something you want to pay any attention to. Let’s ride this current wave extracting the maximum amount while minimizing our risk. Come join Big Wave Trading!
TNDM did not have a good day on Friday and has pretty much taken itself out of contention. This doesn’t mean we could see it reverse course today. However, Friday’s price action is not all that inspiring to say the least. MDB continues to act well and should continue its march higher. Let’s see if ETSY can build some sort of handle. TDG and CDNS are interesting to watch, but we’ll see how they progress moving forward. There are plenty of names to look out for. You just need to be paying attention to what matters.
We hope you had a great weekend! Happy Fathers Day to the great dads out there. Good luck with your trading this week!
