There was an absence of economic data for pundits to opine about, but the action in 3D printing stocks was not optimal. Volume slipped on the NASDAQ, but inched higher on the NYSE. The minimal pullback on the S&P 500 negated a distribution day. At this point, distribution days haven’t really factored into the market as we continue to see any pullback quickly bought up. We are quite a bit extended and the recent move lower isn’t all that surprising. It is important we see this market regain its footing and move higher. Financials are leading and looking solid, but it will take more than just financials to get this market higher.
A seeking alpha article is being blamed for the raid on 3D printing stocks. If you want a revolution in manufacturing it certainly is 3D printing. 3D scanning and printing should be the future of manufacturing, but it does not guarantee their stocks will avoid turbulence. The selling today should give traders some pause and a reminder avoiding panic and sticking with your trading plan is paramount. VJET and ONVO were center of attention. Pay attention to your rules and trade without emotion.
Tomorrow we’ll get a read on Retail Sales and it will certainly bring another discussion on whether or not the Federal Reserve will taper QE. What is interesting is no one is talking about the chances of the Fed increasing QE.
A drowning man will grab onto a snake to save himself.
What if the Federal Reserve sees the effectiveness of QE diminish and pumps more liquidity in the market? What will you do then? Simply buy stocks? Which ones? It is important you have the ability to handle any situation the market will present to you.
The market is nearing oversold conditions on the McClellan Oscillator. It is hard to believe with the market barely off its all-time highs. Stick with the plan and Big Wave Trading.
