NASDAQ 100 Continues to Lead Stocks Higher
Just another week of gains for this stock market. No real surprise with the NASDAQ 100 continuing to hit new all-time highs. Small caps continue to lag the broader market, but we are used to seeing this type of action from small caps. Interest rates are holding relatively steady and given the guidance from the Federal Reserve rates will remain low for quite some time. We can only control what is in our wheelhouse and its how we trade. No matter what happens in the stock market we must keep control of our emotions sticking to our trading plan. Let’s continue to take advantage of what this market gives us.
Most traders here will expect some sort of pull back given the rise in the NASDAQ. It would not surprise us given we are heading into September a pullback in the NASDAQ would not be a surprise. Rotation into Small caps is possible but not given. A lot of possibilities out there and we must keep an open mind. However, nothing is given, and we must allow the market to come to us rather than us force trades hoping it works out. IWM is trading relatively tightly with volume contracting. A push higher would certainly be a bullish signal. It does not guarantee the group continues to move higher. Nothing is guaranteed, but it would signal solid odds the group moves higher and potentially new all-time highs. Stay patient and be ready to strike when the iron is hot enough.
Hard to ignore the AAPL and TSLA splits. From a balance sheet perspective nothing changes, but many feel it helps the smaller investor buy into the stock. Technically, we do not care whether a stock splits 2:1. Reverse splits are a different story and one spelling trouble for the company whose shares continue to experience reverse splits. The public may like the stock splits for the little guy, but really it does not matter in the long run. Price action dominates everything and if the stock is going to continue higher it will show in its price chart regardless of split. Pay attention to what matters and irrelevant corporate actions is not something we suggest paying much attention to.
We hope you have had a great summer. One week left to the unofficial close to summer. September and October aren’t always friendly to the stock market. Given we have an election in November it will be quite interesting how the market reacts. Keep grinding.
