There is nothing like a little light volume rally to start the week. The big winner of the day was the Russell 2000 closing with 1.15% gains. Volume was lower across the board, but given today was a Monday it doesn’t come to us as a surprise. Financials and Biotechs were laggards on the day something we want to keep an eye out for. Overall, it is hard to complain about nearly a high-of-the-day close for the markets within this current uptrend. We won’t fight and will stay along for the ride.
We continue to see folks trying to call a market top here. Of course, the numbers are dwindling, but they remain. One bit of information was how much money $54 billion plus investors poured into Equity funds in the month of October. Market tops have come with investors jumping into the game very late and it can be seen with equity fund flows. Who knows, maybe it needs to be more than $100 billion that needs to be poured into funds to show a top. The same goes with Margin balances. It can always go higher.
At the end of this week we’ll get the first of two job reports prior to the next Federal Reserve meeting. Given the big ISM figures being posted it would appear October would not have been badly hurt by the government shut down. Government employment may be skewed, but given the government came back online the loss of jobs should be minimal. Much will be made by the report and the pundits will be bouncing around where the market will head next. The key for us will be staying the course and following our process ignoring the noise coming from CNBC et al. Follow the trend.
Tomorrow we get earnings from TSLA and while we certainly have no clue how it will react to and after earnings the stock does appear poised to move higher. Earnings come after the bell and the 5 week consolidation is just long enough to see this stock move nicely to the upside. Follow price.
Make it a great week!
