Wednesday’s market helped stop a two day slide and back to back days of distribution. Volume slid on the day and was below average. Institutions weren’t too excited to jump back into the market. This market is under pressure and we certainly agree with IBD’s assessment of the current market condition. After last Thursday’s market action it appeared we were ready to hit new highs. Since then, including today something is not acting right. Yesterday’s action was certainly ominous and today we should have been able to recover with heavy volume. We have seen stranger things from this market, stick to your plan.
With the Federal Reserve out of the way for the week the market will turn its attention to Friday’s job report. Estimates are for the number of jobs added to be 95,000. Hardly anything to be excited over, but hey at least estimates aren’t showing a loss. Perhaps more important to market pundits continues to be the Euro crisis. Whether it is China or the IMF the dance continues in Europe and while it is quite interesting to watch it simply does not make us money. Sound buying and selling rules do.
You can drive yourself crazy rationalizing the market. Jesse Livermore stated you didn’t know the reason why, it would show up later. Trend followers do not concern themselves with the why. Do not get caught up in rationalizing stock moves. It is a reason to join Big Wave Trading, we cut out the noise and get to the point of what is moving. If a stock or ETF gives a buy signal we take it. Trading needs discipline and a plan to execute.
Given the current uptrend is under pressure it is important we see this market regain its mojo. Any further distribution would send some serious warning signals. Stay focused!
