Friday’s job report initial sent stocks lower in fears over a Dectaper. However, a peek into the numbers behind the report eroded the fear and stocks pushed higher. Today’s trade was a continuation of Friday’s meltup in very light trade. Veterans Day volume is typically on the light side and today was no different. On the positive side we had quite a few growth stocks break out in heavy volume shining some positive light on this market. While we had plenty of articles warning over a market crash today’s action was incouraging to us in that we had growth stocks breaking out. Why miss out on the final stages of a bull market? We are neutral, but stocks can still eek out gains in indvidual names.
There wasn’t much excitement from the market today unless you were in a few Three-D printing names. Stocks like DDD, SSYS, XONE, and ONVO to name a few were big winners on the day. This type of action in leading names is something we want to see from the market. The past few weeks have not been kind to leading stocks. SO today was a welcoming sign we may have more upside ahead. Let’s not count out financials either. A few big names like WFC, MS, and BAC look ready to run. Whether or not this comes to fruition is anyone’s best guess. For now, we’ll stick to our plan and continue to push forward.
A few point and figure charts continue to show bullish upside for the S&P 500, NASDAQ and Russell 2000.
SPX:
NASDAQ:
RUSSELL:
How many people do you know who use Point and Figure charts anymore? Certainly not many out there even know what they are!
There were quite a few articles on market tops. Here is a quote from Ray Dalio on QE:
In other words, we’re not worried about whether the Fed is going to hit or release the gas pedal, we’re worried about whether there’s much gas left in the tank and what will happen if there isn’t.
I am not sure if QE will continue to work or not. Does this automatically mean Stocks stop going up? There isn’t a crystal ball to predict this with 100% certainty. It is why we simply follow price.
Economic data will be light this week with Options Expiry capping off the week. The VIX remains tame and looking to make another low here. Given everyone pointing out this may be a top leads us to believe we still have some upside left. As always, obey price and ride your winners hard.
