A good session Friday as the Dow Jones Industrial Average led major indexes followed but the Russell 2000. Volume ended the session lower on the NYSE and NASDAQ. We prefer to see volume increase day over day, but still good to see stocks rise. Earnings season will pick up this week. Be on the look out for your stocks earnings release date. Do not get caught overexposed in a holding leading to potential heavy losses because you were careless. This market has been resilient despite headline and Tweet risk. Yes, Tweet risk is a thing right now as we never know what might the US President may tweet. Regardless, we sit in an uptrend and will continue to forge ahead.
Earnings season is now upon us and it will really ramp up this week. Citigroup this morning beat expectations, but does not guarantee the stock will end up moving higher. The stock still has a fair amount of overhead resistance to clear. This goes for any stock. We have seen earnings season destroy traders’ accounts because they overexposed themselves and refuse to cut losses. If you have proper position sizes and exits Earnings Season will go much better for you than otherwise. Stick with the process and always control your open risk.
Curious to see how the Russell 2000 reacts over the next month as companies report their earnings reports. The index just has not recovered from the selling late last year. It would be nice to see the index regain all-time highs and lead. It would certainly be a signal traders and investors alike are willing to take a risk. For now, big cap names are a “safety” play versus trying to generate alpha. When will this trend end? It is anyone’s best guess, but clearly risk adversity continues to be what traders and investors are after.
We hope you had a great weekend and looking forward to another solid week in this market.
