Led by nearly a 3% gain the Russell 2000 led all major market averages. Volume poured into this market after the Federal Reserve once again delayed hiking interest rates. AAPL finally started moving after the Fed announcement after reacting quietly to earnings. A big positive was the huge move in small cap stocks. Yesterday was not a good day and viola we have a day like today erasing any negativity. Our model is in buy mode and it is pretty easy to see why. Our position sizes will be adjusted accordingly. We will not lose focus and our discipline simply because of today’s session. At the moment, today’s action was quite positive for this market.
We have been taking our long signals for quite some time and were able to grab much of today’s gains. Many hedge funds are folding simply because they thought this market was going to crater. Regardless of their reasoning their opinions were dead wrong. They ignored actionable signals and failed to take advantage of what was in front of them. Now, many are losing assets and are closing down. Don’t let your account fall and come join the Big Wave Trading team.
Our main job continues to execute our strategy. There is no need to get cute or over work our strategy. It is plain and simple. Position sizing and exits are just as important as our entries. At this point we also do not want to get lazy. We must remain diligent with our strategy and execute with flawless precision.
A good day after a hawkish Fed said rates are holding steady. We do not think we will see rates any time soon, but that is for another day. We have a solid uptrend and we will continue to act accordingly.
