A decent day on the street today as we did see stocks shake off early weakness and close higher on the session. It was nice to see stocks rallying, but the lack of volume was a bit disappointing to see. We would have love to seen institutional buyers’ step in and really support this market. While this does not immediately ruin the chances, we continue higher, but does in fact leave the door open for further weakness. We did want to see this overall market consolidate its gains from the December lows and we may be undergoing it now. This will allow stocks to take a breather and set up in new bases perhaps outperforming the general market. Overall, we are on a bit of shaky ground right now. We will remain true to our process and continue to grind it out with this market. Whatever this market wants to throw at us we will be prepared to do whatever it takes.
Two stocks that stuck out during Wednesday session are MDB and TNDM. Both stocks are on the better end on the fundamental scale. TNDM has a series of new products set to hit the market most notably an insulin pump. This is priceless what makes a good stock great. Innovative products with a stock chart to match. Just in the first quarter sales popped 142% year-over-year raising its sales forecast for 2019 from $300 million to $315 million. MDB gained nearly 4% on the day as it rebounded from its 50-day moving average. MDB next quarterly earnings release isn’t until June, but last quarter the stock saw its earnings grow more than 68% and sales more than 70%! Big numbers. There are opportunities in this market and while the Tariff Talks will spook many traders like us will ignore the noise and focus on what matters.
What a difference a week makes with regards to sentiment in the AAII survey. It was not going to be a surprise to see Bulls drop and Bears gain. Bulls dropped 13.3 points finishing the week at 29.8% and the Bears jumped 16.1 points to 39.3%. Not all that surprising given the market action we were witness to this past week. Many traders are subject to the noise generated by the financial news media. Remember, they need to get paid and do so by generating advertising revenue. Without it they would not exist. We choose to ignore the noise and focus on what matters: Price.
We hope you have had a great week so far and finish strong. Get out and enjoy the weekend.
