Early morning future prices indicated a lower open as the British pound fell to 1.28 against the US Dollar. US markets would not last long as the markets put in the day’s low just before the 11 o’clock hour began. Stocks finished out the session at the highs of the day with volume higher across the board. Did volume finally join price? The higher volume is certainly a good sign for bulls and with earnings season coming up could provide a boost to the market. We remain in a trendless market bound by a range we have been stuck in for quite some time. We will need to see a nice breakout with volume to really get behind the market here. Until then, we’ll keep on trucking along by executing our strategy.
It is quite remarkable to see the market find its footing. If we are to move higher this is the type of action, we continue need to see out of the market. Today’s Fed minutes release did little to sway market action, but Friday’s jobs report certainly could provide some fireworks. We know the Federal Reserve is stock between a rock and a hard place. They do not have many options at their disposal. Given the currency markets it is hard pressed the Fed would want to strengthen the dollar directly. A stronger dollar will continue to put pressure on global currencies including the Pound and Euro. The Fed absolutely CANNOT have a currency crisis ruining their economy!
We will stick to price action and let the other talking heads battle out who has it right or not. No matter to us all we care about is getting long/short when signals present themselves. Do not over complicate matters. Keep it simple and execute!
A solid day today and we look forward to the next two days!
