Another day and another day where stock prices finish off in the green.  Volume slid on the day as many on Wall Street pulled back from Wednesday’s euphoric action.  The Alcoa earnings miss has all but been forgotten as stocks have moved past the disappointment.  This uptrend certainly has legs and looks to break into new highs on Friday.

Fighting this uptrend has proven to be a tough lesson to learn.  We’ve heard it from many new subscribers how in 2009 they simply fought the trend the entire way.  A key lesson is you are no smarter than the market and neither are we.  The market is the ultimate pricing mechanism and is never wrong.  If you follow the trend and use history as your guide to narrow the market down to the true leaders you will greatly increase your bottom line.  It takes time to become fluent enough to make money and this is precisely why we are here.  Big Wave Trading is here to guide you and groom you to be a professional trader.

All new high/new low measures are pointing this market higher.  A healthy dose of new highs is what we need to see for an uptrend to continue.  Past market uptrends all had a healthy new high/new low ratio.  The bottom line is we need to see continued strength for us to continue to see further price advances.

Breadth measures continue to point towards this market moving higher.  Even nearing another high this market continues to flirt slightly below overbought conditions.  Keep in mind overbought and oversold conditions can last much longer than logic would dictate.  This is precisely why you never fight the trend.

Yesterday big cap technology stocks broke out with anticipation of INTC earnings.  After-hours the market saw INTC beat its earnings estimates on their best margins in the history of the company.  This is a positive development for the market and we look for this to continue.  Remember, the NASDAQ has one day of distribution and no signs of stalling.  Therefore, it is far to pre-mature to be calling for a market top here.  With big cap tech taking over we will see the NASDAQ begin to really move.

If you are waffling about a subscription email us sales@bigwavetrading.com.  Enjoy your Friday and weekend!