Tuesday’s session witnessed stocks push higher on stronger volume. A good sign to see solid price gains and volume behind it. Despite closing off their highs of the session the general market had a good day Tuesday. Healthcare was the leading sector in the S&P 500 on Tuesday while Consumer Staples and Utilities lagged closing lower. Perhaps a shift away from defensive stocks is an indication of where we are at with this market. One day does not make a trend, but something to keep an eye on as we proceed into Earnings Season. Overall, not a bad day on Tuesday. We would have liked to see the general market close at its session highs, but all-in-all not a bad session. Earnings Seasons will certainly kick up some dust and it is paramount we adhere to our risk management process.
Banks are beginning to report as JPM jumped on its earnings release. Pay attention to your stocks and when they report. Adjust your positions accordingly. Positions with very little cushion should be managed properly. We do not need to see blowups impact our bottom line. Earnings Season can lead to significant losses if one is not careful with their position sizing and allocation. There are upside surprises too, but as we manage our account risk must be taken seriously. We do not need fear the market, but a healthy respect for the downside is a must. While cutting losses is key to success missing out on big winners can be almost as detrimental to your account.
GOOGL is an interesting stock as it appears to inch towards a breakout. It reports on the 28th of October. AAPL has steadily climbed higher despite the market volatility related to the trade negotiations between the United States and China. NFLX continues to struggle as more and more competitors jump into its space. FB and AMZN are trying their best to keep up with AAPL and GOOGL, but with earnings around the corner how much momentum will they have behind them? Time will tell, but for the most part the big boys of the NASDAQ100 are holding up well.
We are in a market where you control your risk gains will be had. They may not be tremendous, but progress will be made. If you are willing to put a little bit of effort you will succeed. You do not need to hit homeruns every trade. Most think this is the case. Stick with Big Wave Trading and we’ll help provide the names with potential to drive your portfolio higher. Best of luck to your trading this week!
