Much like the prior Monday today’s market lifted higher in very light trade. The market was led by the NASDAQ and Russell 2000. AAPL and GOOG were two stocks helping out the technology stocks today. We still are without a follow-through day on the NASDAQ and while we still have the S&P 500 and Dow near all-time highs this stock market continues to churn and burn traders. Volatility remains non-existent with the VIX below 15. At least the bright spot is the NASDAQ is one solid day with volume away from confirming a new rally. While many will be debating Tepper’s timid comments regarding the market we’ll continue to follow strength and shed weakness. Avoid the noise and stick with the trend.
Not much in the way of big economic releases this week with the exception of the Federal Reserve minutes Wednesday afternoon. Earnings continue to trickle in and they aren’t anything to write home about. At this point, other than Wednesday it will be a quiet week. We suppose Putin could decide to kick up foreign relations a notch with Ukraine. All of it would be a theatre for us and we’ll simply focus on the price action following any such event. Do not waste your time trying to figure out the next move of the market. All you need to know is whether the market is in an uptrend, neutral, or downtrend.
A microcosm of this market perhaps is Zillow – Z. The stock tried to breakout in April and was met immediately with selling pressure. Today’s move had some volume with it, but will it follow April’s pattern? Given its wild nature since April it makes it difficult to have any size in the stock. There are a few stocks out there moving on volume, but what is lacking is the quantity of them. We are busy looking for stocks in the event this market turns. We need to be prepared regardless of the outcome. It is critical we do not miss out on any upside opportunity.
Ignoring volume, today was a nice start to the week. It was not the greatest, but all things must start somewhere.
