Stocks Rally into the Close Friday
A big rally into the close Friday pushing stocks to the highs of the session. Volume ticked higher above average on the NASDAQ indicating a big push from institutional buyers. Let’s face it economic numbers are not going to look good. You shut down an economy you are bound to get awful economic numbers. There is no need to focus in on these as really all that matters is price action of the market. Gold and Silver continue their tear. It isn’t a surprise given the world continues to have the money printing presses going full tilt. The amount of debt across the globe and given the support of Central Banks there is no telling how far this market will go. Why it is important for us to maintain our focus on the price action rather than thinking we can figure out what the next move is from this stock market. Stay the course and continue to grind away with this market.
We may be in a market with the largest stocks are pulling us higher. AMZN and AAPL are two monsters who continue to defy the odds. There are other stocks poised to push higher as well. CRWD, LULU, ZM are just a few stocks acting relatively well now. Perhaps they set up nicely maybe they do not. We are not going to dismiss anything setting up well in a base right now. Why miss out on gains? To satisfy our need to be “right?” It is amazing to see the self-destruction amongst traders who believe they know precisely the next move of this market. There are no oracles and if you hear a “guru” telling you they know what is coming next, run away. It would not surprise us to see this market push higher into the year end and is with a weak seasonality period coming up. Stay focused.
We still see the AAII survey remaining bearish. The public simply does not believe stocks can push higher over the next 6 months. Given the news headlines cannot say we blame them much. Daily there are new COVID-19 cases and continued rise in deaths. Tragic. No matter what the news headlines read we must remain focused on our task at hand. Who knows, the crowd may be right at some point.
First day of trading for the month of August and a new week. Time to saddle up and execute.
