This has been a solid week for the market as we continue to see the stock market pile on gains. Volume has not gone gangbusters, but given we are in a holiday week it really is no surprise turnover is light. It has been nice to see IWM breaking through its upper resistance. SPY and QQQ continue their march through new all-time highs. Many want to pick a top here and are clamoring to be the one to “call” a stock market top. We are not going to be the ones who try rather we will be the ones who continue to ride this market higher. This market is strong and there is no evidence we are going to turn lower. Our focus will remain on leading stocks and the price action of the overall stock market. Stay with Big Wave Trading and we’ll help you maximize your potential.
Despite the continued push higher into new high territory the crowd did not shift to the bullish side. The number bulls in the AAII survey dropped week-over-week to 33.6%. Hardly a bullish stance on the market. The number of bears pushed higher above 30% to 30.3%. Is this surprising given the rise in the market? Sure, but we are not blown away given what we see across social media with regards to this current stock market. Sentiment has been a funny thing since we have lifted off the 2009 lows. We wouldn’t expect anything less from this stock market to be quite honest. It will be interesting to see how the proceeds through the end of the year. We know whatever happens we will be ready to take advantage.
Something to keep an eye on is Biotechs. LABU has risen nicely since it nearly took out 2018 lows in October. We do not know why we have seen the group lift off the lows. AMGN has moved higher since it reported earnings in October. Keep an eye on the group. The move off the lows has been nice and perhaps will be the group leading us higher into more new all-time highs.
Black Friday news continues to be pumped through CNBC and Fox Business. AMZN has Cyber Monday and the stock has recovered from its Earnings release blip. XRT has not done much over the last 5-years. AMZN is much more than a retailer, but even a stock like SHOP have taken away from the traditional retailer. We do know one thing is for sure is the undeniable need for the American Shopper to consume way more than it needs.
We hope you had a great week of trading and have capitalized on this market. There are more gains to be had if you are willing to stick with Big Wave Trading.
