For much of the day the stock market appeared as if it would have solid gains across the board. IWM was leading and all looked well. However, gains began to fade away and sellers gained the upper hand sending stocks lower for the session. Exchange volume was lower across the board. We did see volume increase day-over-day in SPY and IWM. Despite closing lower on the session QQQ and SPY are still knocking on the door of all-time highs. DIA is in the same boat. IWM still has not been able to return to former glory. Perhaps in time and maybe with a Chinese trade deal we will see small cap stocks reach all-time highs again. The reverse may be true too. Without a trade deal the economy may sink into a recession pulling down stocks into a bear market. Regardless of what the market does we will be prepared.
There is a lot riding on the Chinese trade deal. Both sides have incentive to make a deal and remove the tariffs. We are not experts nor pretend to know enough about the inner workings of how a trade deal is done. We are seasoned veterans when it comes to the stock market. This site hasn’t existed since 2007 just because we are lucky. The focus of a successful trader is price and leading stocks. Everything else is just noise and something we do not need to pay any attention. Our stops are in place to protect ourselves from any downside. Whatever this market has in store we will be ready.
It is hard to believe the month of September is almost over. It has been a solid month for Big Wave Trading. While we are in a tough seasonal period, we have managed to take advantage of this market. August was certainly choppy, but September while challenging has produced some gains. The market is here to confuse as many people as it can. Most were expecting the market to continue to push lower. The announcement of trade talks helped ease fears of traders and perhaps push the market higher. Now, we will simply wait out and react to how we proceed into October.
We hope you had a great week of trading. There have been some decent gains out there. Go out and enjoy the weekend!
