Investors began the week worried about another debt ceiling fight centered on Obamacare. It appears the media will be totally focused on this issue rather than what the market is actually doing. The few bits of economic data were mixed with the US flash PMI from Markit was disappointing, but at least it should growth. Volume was above average today and given the support the market received is a good thing for now. Friday’s volume was inflated from quadruple witching and is simply silly comparing today’s figure to it. The losses on the day were curbed by an afternoon rally taking the sting of the early morning losses. It does appear today’s rebound continues to follow the previous trend of recovering early morning losses. Today’s action is certainly a bullish signal for this uptrend. Not the best ways to begin the week, but we’ll take it.
Aside from news from DC the other newsworthy story was AAPL selling more than 9M iPhones over the weekend. The stock jumped higher by 23 points ending the day 10 points shy of $500 mark. Volume jump well above average and was able to surpass Friday’s level. If AAPL can gain momentum it certainly would go a long way to helping the NASDAQ remain at multi-year highs. MSFT launched its new line of Surface tablets, yet the stock remains a dud. How many people do you see walking around with a Surface tablet versus an iPad? No way to make a trading decision, but proves MSFT remains a laggard when it comes to innovation.
It is important you stay on the leaders of this market. A few today were hit on early in the day, but were able to battle back. This market will do its best to shake you out of a position and without a sound plan you’ll fall for its tricks. One thing to keep an eye on for this market is how financials react after taking it on the chin today. If you didn’t have a plan how would you handle XLF? Make it up? Or would you have a sound trend following plan? If you don’t have a plan on how to execute it is best you join the Big Wave Trading family.
Ride your winners and cut your losers. Enjoy the remainder of the week.
