Once again Europe helped set the tone for the market pushing futures higher during pre-market hours. Buying was strong during the morning hours and continued right into the close. Quite the turnaround from yesterday’s pathetic showing by stocks. Financials helped boost stocks, but BAC volume is giving indications institutions weren’t in a hurry to scoop up the stock. Volume wasn’t too impressive as it was below average on the NASDAQ and S&P 500. Price performance was impressive, but we’ll need to see institutions step up to the plate and support this market.
Last night’s commentary was quite timely. This market as of late has been a doozey for sure. Shorts were certainly caught once again by “positive news out of Europe.” Remember, opinions are opinions and they simply do not matter to this market. Sure, everything looked real weak on Monday, but it wasn’t like volume surged in. Monday’s trade was just above the day after Thanksgiving in terms of volume. It wasn’t convincing to the downside as today’s move wasn’t that powerful to the upside. Volume can come in later as traders and investors rush back into the market chasing gains. For now, we’ll take the market as it comes to us and leave the opinion making to the “professionals” on CNBC.
Complaining about the market will do you no good too. Sure, it is easy to blame failure on anyone other than yourself. However, the market isn’t a person and isn’t out to get you. You are simply arguing with yourself. A disciplined, systematic approach is the only way to go in this market. Cutting your losses and letting your winners run is the proper way to trade this market. It is hard, but over the long-term it is the only way to survive in this market. Focus and disciplined!
