Monday’s session reeked of a Bear Market and Tuesday’s was not any different. This type of lackluster performance does not breed confidence this market can muster a viable rally. It isn’t a secret higher rates are of great concern to the market as well as tariffs. The FOMC rate announcement today will be interesting and one that should provide the market with some fireworks! If they do hike rates their message has to be on point. On the other hand, pausing and doing nothing will have to be explained just as carefully. After 10 years without a recession it would not be out of the question for us to experience one. We are still finding opportunities with day trades with EOD trades so few and far between. Stay disciplined and follow price!
There is no 2 ways to slice this market. SPY continues its weakness and volatility remains high as measured by ATR(14). IWM is in the same boat. The QQQs are, barely holding onto November lows. Each of these index ETFs have a set of lower lows and lower highs. The very definition of a downtrend. There is no sense in fighting the trend. We will continue to look for signs this market will turn around, but at this point it maybe a long time.
We have a stock that has been beaten up in the market and on Capitol Hill has been FB. Since the summer the stock has really been taking a beating. You name the headline and the stock couldn’t hold up until now. Yes, this is a large cap tech name. However, we are seeing the stock begin to put in okay relative performance. It is something to keep an eye on as we move into 2019. Most other large cap NASDAQ stocks like GOOGL, AMZN, and MSFT are very choppy and need a lot of remediation before returning to their former glory! We will continue to scour the market for opportunities and with plenty of dry powder when the time is right we will do very well!
Have a great to your trading!
