Out of the gate the market was higher as market participants dragged themselves back from a long weekend. Summer is now over, unofficially and perhaps volume overall will come back into the market. Volume did jump over Friday’s end-of-the-month volume surge at the close and was above average on the day. While pundits will link Obama’s beat of the War Drum as well as Boehner the fact that gains weren’t able to hold is quite significant. This mornings move setup a possible follow-through day and unfortunately buyers weren’t there to cover the supply. On the positive side the market was able to close on the positive side and bulls can walk away somewhat happy. We aren’t out of the woods yet and hedges while aren’t being added to remain in place.
Stepping aside from actual price action it is somewhat ridiculous the US and its standing armies are being dragged into another Civil War. While we may think it’s a noble cause do we really know what side we are fighting on? During the US revolution it was quite clear what each side was after. In Syria do we really know? We have been at war across the world with a tired army. Is it wise to get into another one? Besides, if we side with the rebels do we really know what they are after? Rebels are the ones we are arming with Assault Riffles and they do eat organs of their enemy (Syrian Army). I thought Obama won the Nobel Peace prize because he wanted peace…
Back to the market.
Regardless of what war may or may not do this market continues to find itself in a rut as of late. At the moment, this short-term downtrend we are in since the beginning of August has not seen any sort of accumulation. Sure, we can blame it on summer trading. However, today would have been a day where money could have been put to work. Instead, we waivered and let a follow-through type day slip through our fingers. Maybe it is not meant to be and September being a seasonally tough month for stocks will end up being a tough month. Why it is important to stick to a sound process and discipline. While you may think one thing the market will do another.
Again, I’ll point to those who thought May 22nd, 2013 was a market top and June’s low was a buying opportunity. Did you miss out on gains? We have seen this story before and while we can’t force a horse to drink from a trough we can certainly lead one to it. This is why you should become a Big Wave Trading subscriber.
Ride your winners, cut your losses.
