Following up yesterday’s performance stocks see volume subside and the Dow continuing to find buyers. The NASDAQ and S&P 500 were able to inch out gains, but it was not an overly impressive showing for the overall market. Energy slumped on falling crude prices. Pundits blamed shale producers coming on line as crude oil has been able to hold the $50 level. Fed’s Beige book really didn’t tell us anything we did not already know. Perhaps one thing we did not know was Yellen could not put a time table on the next rate hike. If last year is any indication it will be December 2017 when the Fed will hike rates next. We just are not seeing market showing any signs of life and so we wait. We must continue to grind with this market by cutting laggards and following our system.
There are not large catalysts other than individual earnings reports. Next week we have big cap technology reporting, but from a large “event” driven market there isn’t much other than Trump’s inauguration. All we know is that this inauguration will be the best one ever seen. Nothing will be able to match it, not even close. We digress. Many do believe the market is set to take a tumble after Trump is sworn in and we are seeing it via put/call ratio. However, we are not in the predicting business and can only take it one step at a time. Leave the predicting to the professionals.
It is good to know when your stocks are set to report earnings. If you in a stock with earnings reporting and you do not have any cushion it is best to reduce what you have. Reduce your risk with earnings, it truly is a shot in the dark as to how the stock will react. There are far too many blowups.
Enjoy Thursday’s action.
