At the start of Thursday’s session, it certainly appeared as if the Dow was going to head towards a 3-day losing streak. The market reversed course and end higher across the board with the Dow edging out a 3-point gain. NY Fed comments over a rate cut certainly helped but remains to be see if the FOMC will do anything at their meeting next week. An interesting breakout on the day was Gold as investors have been fleeing to the precious metal. Inflation about to pick up? Despite the volatility Bitcoin has held its 50-day moving average. A solid session across the board for the broader market. We are still waiting on IWM to take the lead. For now, we will continue to press forward with the market we have in front of us.
It certainly seemed like a rollover was going to happen. Hard to fight an uptrend and why we suggest not swimming against the current. Sure, we can say a top is looking likely. However, our trading reflects how price reacts not what we think. Let’s not forget, this thing can still reverse hard at any moment. On the other hand, we can see it continue push higher. All we know is the trend is up and we do not want to fight it. Our stops are in place and position sizes are on point. We will let the market do its thing and go along for the ride.
NFLX really took a tumble yesterday after reporting earnings. Next week we get AMZN, FB, and GOOGL reporting earnings. AAPL goes on the 30th of the month. The NASDAQ will certainly be impacted by its biggest names. Something to keep an eye on as these big names report earnings. As earnings season progresses make sure you know precisely when your holdings and potential trades report. You do not want to be caught with positions oversized and not obeying exit signals.
Friday’s trading session will certainly be focused on the NY Fed’s comments. Where we end up is anyone’s guess. Your focus should be on the price action and your risk management process. If you are not a subscriber remember to sign up with coupon code: SUMMER19 to get 40% off subscription prices. Our first sale in over 2 years! It won’t last long, and it may be a long time before we have a sale like this. Take advantage of this opportunity.
Have a great day of trading and enjoy your weekend.
