The wait is over for many traders as the last day of July for 2019 has arrived and the FOCM will make its latest policy decision. Expectations are the Central Bank will cut interest rates by 25 basis points, but many believe should be more. All eyes will be on the statement combing every inch of it over analyzing what it might mean going forward. We will be focused on how the market reacts to the news and act accordingly. If an intraday trade shows itself, we will certainly take advantage of it, but we are not going to force any trades. Wednesday market should be quite interesting, and we are looking forward to seeing how price reacts.
Tuesday, we saw Small Caps stocks as measured by IWM have a solid day. The day did not start out well with the group sluggish but found buyers to help push IWM to its highs of the session near July 1st high. IWM still sits below May’s high. Two areas providing resistance and will be interesting to see how IWM reacts to both levels. DIA has been consolidating very well at its current levels. A little flag pattern has emerged, and it would not surprise us to see DIA continue hitting all-time highs. SPY and QQQ continue to notch new highs. Many will try and catch the turn here. However, so far, they have been missing the market. We’d rather catch majority of a trend than miss it entirely by churning our account looking for a market top.
AAPL and GE reported earnings. AAPL reported after the bell and it seems like they put an iPhone in every American’s pocket. Regardless of what the fundamental analysis might say the stock is higher after the release. We noted a while back the pattern AAPL had built and today’s session we’ll likely see it break out. If you had caught the turn in June bravo. GE too reported earnings. The stock has been beaten up as the company has been a complete mess. Absolutely atrocious price action since the end of 2017. Has the stock bottomed? Great question, today we may see the stock break above its 2019 high set back in February. Most will think the stock will get back to $30 but for now the stock is breaking out here after earnings. Have a game plan: know your position size and exit. Just execute properly by remaining disciplined.
We hope your Tuesday was a good one and overall hope your summer is going well. This market is unrelenting, and we love it. Keep grinding.
