While the S&P 500 hit another all-time high the index was unable to end the day with gains. The NASDAQ Composite would be the only index coming away with gains on the day. However, the story continues to be the dollar versus the yen. As the Japanese central bank is hell bent on printing their way out of their economic conundrum is already sending the dollar much higher. As the dollar pushes higher commodities are headed lower and this is good news for just about every consumer. Whether or not dollar strength will hurt multinationals will remain to be seen as many are able to hedge their currency exposures. In the end, it will come down to how price reacts and we will be following along.
As the dollar pushed higher the NASDAQ Composite index moved higher as well. Volume was lower on the session, but Monday’s always see lower volume. It would be nice for this market to push sideways consolidating gains from the last 13 sessions. We do have the October jobs report on Friday and if we want to add to these gains consolidation is sorely needed. If we do get the consolidation big gains can be had making us very happy campers. While it is nice to think about great gains it simply is wishful thinking and leads to sloppy decision making. Stick with the now and follow your trading plan.
We get two interesting earning reports tomorrow morning. First, the stock who many thought was calling a top in the market and the stock is BABA. All eyes will be on this stock after it reports its first time as a publically traded stock. PCLN is the other stock reporting earnings before the bell and the stock typically sets the tone for all travel sites. The stock has had a lackluster trading pattern since setting a top earlier this year. It will take some time for the stock to shake off the overhead resistance, but will it start with its earnings report?
Monday’s session was a good start to the week and a few more sessions where we can pull back in light trade would put this market in great position to push higher.
