What an impressive start to 2018 for this stock market. We are not surprised by the force at which we are moving at. Despite growing optimism amongst the individual investor all historical references point to 2018 pumping out more gains. Fueled by the tax cut for corporations passed in December many are anticipating this market producing solid earnings. S&P 500 sectors leading the way were Energy and Information Technology. Telecom and Utilities suffered the worse. Energy is gaining as crude oil is making multi-year highs. A falling dollar certainly is helpful to higher energy prices. Even with higher rates the dollar has struggled to gain any momentum to the upside. This market is ready for higher prices and it is up to us to manage our risk properly.
Let’s continue this win streak. More importantly it is more about controlling our risk than anything else. So many do not understand this simple concept and the lack of employing it is leaving gains on the table rather in your portfolio. Do not forget this important concept. We employ it at Big Wave Trading with great success! Do not leave gains on the table.
More to come, but stay vigilant.
