Tuesday’s session kicked off with gains, but sellers had other ideas. The S&P 500 closed on the session while the Dow and NASDAQ closed with slight gains. Volume was up on the session at each exchange. It would have been nice to see the broader market close at the highs with higher turnover. In the near term we are quite overbought and expect some sort of consolidation period. IWM hit up against some major resistance and we would expect to see some choppy action. A pull back to key support areas for QQQ and SPY are not out of the question, but we will maintain our discipline and avoid knee jerk reactions. We do not know where the stock market is headed next. Stay focused on what matters: Price.
Earnings season is winding down, but there are still stocks reporting. Always be prepared for earnings reports and always have your position sizes in check. There is no need for unnecessary risk in your portfolio as it will lead to you unable to achieve a high performing portfolio. Controlling our risk is how we stay in this game and why Big Wave Trading has been around since 2007. Many traders have not experienced a huge drawdown like 2008-09 and are quite ill-equipped to deal with that kind of selling. Learn from us as we have the experience to get you through any type of market.
Steady as she goes here with this market. Our exit strategy and position sizes are in accordance with our risk management process. There is no need to be a hero and certainly no need to try and press your luck with this market. Too many will try and get rich quick. The stock market is not a place where this happens. Anyone telling you otherwise is trying to sell you beachfront property in Arizona. To be successful you must have the discipline and grind. We hope you have a great day of trading!
