NASDAQ Stalls Out with Small Caps Leading the Market Lower

Just when you think the market is about to bust higher it stalls out on us. Today’s market action while not entirely bearish certainly throws a monkey wrench into the mix. NYSE volume was lower giving the S&P 500 a nice day of consolidation. It was late day selling putting the NASDAQ into a tail spin. Once again this market finds itself in a precarious situation and for us we are looking for distribution. Not that greatest of days, but we’ll need to see this market rebound higher.

All over Big Wave Trading we have been making reference to this uptrend as going to be very difficult to manage. At many points it has flashed potential sell signals, but only to reverse higher. The best course of action is to simply not give into every little hint the market may have topped. Giving away potential big gains to pick a top is where most will end up at. We rather let winners run and run, not cut them short.

AAPL once again hits a new 52 week high, in part keeping the NASDAQ from further damage. CMG is another long term winning stock hitting a 52 week high. The stock reversed from the high, but it is hard to argue with the stock’s performance since December. CMG has been quite consistent and very unique and you can bet your bottom dollar many are trying to pick the top of CMG. They continue to be wrong. Picking tops and bottoms is a fool’s game and only leads to losses.

Have a game plan and stick to it.