Recapping this month has shown Big Wave Trading has been on this move!
This past month has been a stellar one for Big Wave Trading. We quickly identified a newly formed trend and went long. If we were married to an opinion and agreed with many market pundits we would have continued to stay short and would have had our butts handed to us on a silver platter.
From September 1st Commentary:
“I have been pointing out the positive action in leading stocks, while not a guarantee the market will follow-through, but adds to the possibility of one occurring. It was important the market move and move quickly as we were testing last Friday’s lows and when you test a point too often it tends not to be support. Therefore, today’s move was a step in the right direction to find stocks about to make big moves.”
Market Leaders are the key to any market and when these stocks hold up during a market correction you best pay attention. They are our number one indicator when it comes to the stock market.
September 2nd:
“In a confirmed uptrend the necessary ingredient is leading stocks. Leading stocks are stocks who have gone on to form and run away from solid bases. Not too mention they display superior growth in key fundamental areas. We are certainly seeing a lot of new leadership and even some older leaders from 2009 uptrend are building solid bases and are breaking out NOW! This market hasn’t coughed up the number of quality leadership in quite some time and is certainly a positive signal for further upside.”
A theme is emerging here as we continued to see market leadership push higher after our follow-through day on September 1st.
September 8th we continued to see positive action:
“The market notches an accumulation day with volume jumping higher than Tuesday’s depressed levels. It was important to see a day of accumulation for this market since last week’s follow-through day. Stocks ran into a bit of resistance prior to the release of the Federal Reserve’s Beige book. However, the market was able to rebound from the initial selling and close above the mid-point of the session. A true sign of strength is for the market to be able to rebound after a bout of selling. The market had plenty of opportunity to roll-over and succumb to selling, even late in the day it appeared the market would give up and buyers would have no of it. Accumulation is a great sign and today was an all-around positive day for stocks.”
Even a downbeat report for the Federal Reserve could not hold back stocks. A very positive signal indeed, but again market leadership had been and continues to be very strong.
Opinions, they do not matter we want to pay attention to market action rather than a CNBC talking head.
“Today’s move pushed the S&P 500, NASDAQ, and Russell 2000 above their respective 200 day moving average another big hurdle. Many believed the 200 day moving average would prove too much for the indexes and we’d fail. The market had other ideas with volume surging as we pushed through the important moving average. For those who thought we were overbought were burned today and why we pay attention to our stocks.”
Doubting a market uptrend is simply foolish and picking tops is much more so. Always trade what you see and never what you think!
From September 20th:
“Big technology stocks lead the market with AAPL stock breaking into new highs. BIDU stock was another big technology stock breaking into new high territory. Another big day of gains for the market as we saw the S&P 500 break above resistance with volume coming in higher on the index than Friday’s inflated from options expiry. This sign of strength does not come often and today proved the market’s strength. The key has been the ability to hang onto your leaders for big gains. We are enjoying this market rally and it appears we have plenty of room to run.
There have been plenty of market pundits, including Doug Kass who have called for the market to consolidate. Just last week Doug Kass called for the market to pull back and began shorting the market. If the market was that easy we would have many more people making big money in the stock market. However, it isn’t easy as support and resistance as today proved. Doubting this uptrend has come at a hefty cost as we continue to move higher.”
If you follow our nightly commentary and through this quick synopsis Big Wave Trading members have had a great run and we look for this market to continue marching higher. Do remember to check your opinions at the door as they DO NOT MATTER in the market. If you haven’t beaten the market this year or continue to lag it is time to join Big Wave Trading!
Membership questions email us at sales@bigwavetrading.com
