Monday’s trading session was a low volume day as many market participants are busy on vacation for the Fourth of July vacation week. Tech stocks led the entire market higher as the NASDAQ found a bit of support at its 50-day moving average. Utilities were the second best performing group in the S&P 500. Investors seem to be pushing into Utilities as a hedge against a market decline. Who knows what it is, but the group has bounced off its ugly start to the month of June. This week is going to be a very light week. Tuesday’s session will be cut short as anyone who is left trading will be running for the door early today. Volume will be non-existent and tough to glean much from the action. We will stay the course while maintaining our risk levels.
All major indexes besides the Dow Jones Industrial Average are holding their 50-day moving average. The Dow currently sits below its 50-day and 200-day moving average. Trade talks aren’t helping the situation and many blue chip stocks are stumbling at the moment. The good news is we like strength and stick to names that are moving up. It is a basic premise just like cutting losses short. However, so many fail at these basic concepts they will end up ruining their account. Our goal is to grow our accounts becoming financially independent. If we choose not to follow time tested rules then it is our fault not the stock market’s or someone else’s.
It will be interesting to see how this July will turn out. We do typically see a rally in July, but given all the geopolitical mess it is anyone’s best guess how July 2018 will turn out. Regardless of the direction of the market it is our intention and goal to maximize our profit potential while minimizing our downside risk. We hope everyone has a safe and happy holiday.
