Friday’s volatile day highlights the struggle between bulls and bears. The job outlook has been grim for quite some time, but Friday’s report just highlighted the lack of movement on the jobs front. Buyers stepped up and supported the market, but late morning selling took the market back to its lows of the day. At that point, the market was simply hanging out at lows until early afternoon buying sparked the market to push back to the morning levels. Volume shot up at the open, but declined as buyers stepped up. Volume ended higher on the day across the board favoring the NYSE over the NASDAQ. A positive day overall, but we’ll need to see volume surge with a push past previous highs.
We continue to see support at the lows where buyers are stepping up supporting the market. This is a great way to work off oversold conditions, but with the Federal Reserve Rate Decision set to be released on Wednesday it is this week’s wild card. Corporate earnings have been much better than expected, but with the job market in question the market is on pause until the Federal Reserve meeting. Trading should be light leading up to the rate announcement, but be prepared for anything.
Preparation is one of the key’s to success in the market. It is of the utmost importance to have a routine to review the market as well as leading stocks. A set routine will have you prepared for the market day in and day out. Flying by the seat of pants will have you trading your account into the ground. Successful professionals have set routines they repeat day in and day out while amateurs are inconsistent. Get into a set routine to review the market and make Big Wave Trading apart of that routine.
Best of luck to the week ahead.
