A lackluster day of trading for the markets today. Volume was once again lower across the board. Typical for a Monday. Biotechs kept the NASDAQ in the green while the Dow struggled all day long. Crude fell on the session moving back down to a $43 handle. The financial media was blaming the Canadian wildfires for the fall in Crude. Let’s not forget the commodity has nearly doubled since its lows in February. This market continues to hang tough with the S&P 500 and Dow holding relatively well. This type of action for these big stock indexes is typically a good thing. For now, we still look for this market to creep higher.
Whether or not the seasonal headwinds from “sell-in-May” come to true this year remains to be seen. May through October is not a good time to be in stocks historically speaking. We did see some food stocks lead the way suggesting defensive names continue to reign supreme. While it is nice to see some stocks push higher it is typically not that kind of industry you want leading a bull market. Even still, we stick with the trend keeping our risk profile in check. There is no need to be a hero and deviate from our process. That is how you will bleed your account dry.
Let’s see how this week progresses. The Friday’s job report was not that great and this entire recovery from 2009 has been less than stellar. Thankfully, with ZIRP and 3T in liquidity the Federal Reserve has been able to keep this market moving higher even if it has broken more than a few bears in the process. The why simply doesn’t matter. Price does.
Have a great week and execute with flawless precision. Stay disciplined.
