Sunday night traders were spooked, even a few here at Big Wave Trading about a warning issued by Moody’s about AAA rated countries. On cue, future traders plunged futures, but by Monday morning they had forgiven many of the losses seen prior to Monday’s open. To add insult to injury Google stated they are 99% sure they are going to pull out of China all together. The NASDAQ was under fire all day, but volume ran lower all day suggesting institutions weren’t dumping stocks on the market. Volume was a key indicator as stocks fell so did volume. By the 3pm, stocks lifted off their lows and with the Dow Jones Industrial average and S&P 500 closing near their highs of the day.
We had plenty of chatter this morning regarding Moody’s call and not too mention Google’s press call. In the end, it is price and volume action, but more importantly it is the leaders. Our leaders are still in tact and continue to display good action. Even on our indexes we saw prices get supported and although at a few points today it may have seemed this rally is over the market wouldn’t have any of it. When leaders begin to roll over and distribution piles up we can say the uptrend may be ending. In the meantime, we’ll keep our ears and eyes opened to what really matters in the market rather than the noise spewed by CNBC.
Our uptrend remains intact, and continue to push forward. Stay disciplined.
