A light volume affair on Tuesday as traders await Powell’s testimony. While we have yet to hear news of a deal between China and the US the focus has been on a rate cut. Will the Fed cut rates at their next meeting or not. A trade deal with China would all but put to bed the notion of a rate cut at the next FOMC meeting. The Bond market is still indicating a weaker economy as we head into the latter part of 2019, but the stock market doesn’t seem to care too much. The S&P 500 is near all-time highs along with the NASDAQ Composite index. We are in an uptrend and are not going to complain this market wants to continue to climb higher. Distribution days will be watched, but for now all systems are a go to continue this march higher.
FB enjoyed a nice day yesterday pushing above its 2019 high. A good sign, but ahead of earnings this one will be tricky. GOOGL continues to slop around, but don’t be surprised we see it back to 2019 highs at the end of the summer. Anything is possible and this market does like trick as many people as possible. MSFT continues to act well around its all-time high. Hard to imagine for most, but price is proving otherwise. AMZN broke out of a big cup with handle pattern. Like FB breaking out before earnings will present some challenges, but great to see the big caps moving nicely. It will be interesting to see if NFLX can break free of its most recent range too. Keep an eye on AAPL, it too could break free.
We don’t know if this is still the most hated stock market period ever, but you would think we would have many more bulls. Twitterverse seems to be a collection of bears especially when there is a hint of selling. Our goal is not to be right in terms of a “call” but to capture most of the trend. There is no chance we would ever capture 100%. Most will try anyways, but for us we just care about capturing as much as we can while protecting our downside. Leave the guess work to the market pundits on TV trying to sell ad space. Ignore the noise.
Bitcoin continues to act positively. For what reason? We do not have a clue, but it continues to push higher. GLD broke free of resistance and now is consolidating perhaps concerns over lower rates is causing traders to flock to these. At the end of the day it does not matter. Price matters and we are going to pay attention to it.
Wednesday should be an interesting session for sure! Make sure you are getting out and enjoying the summer months. Best of luck to your trading today!
