The market will have to go it alone without the Fed as the FOMC meeting minutes revealed the central bank is sitting on its hands. What was the impressive part of the day was not the move off the lows of the session, but leading stocks kicked ass and took names. While the move off the lows was quite bullish for stocks it was leading stocks stealing the thunder. Volume increased across the day giving a day of distribution across the board. All in all not a bad day considering where the indexes stood after the release of the FOMC meeting minutes.
What an impressive move put on by leading stocks. AAPL and PCLN continue to dominate the market pushing into new high territories again. AAPL continues to get press about hitting the trillion dollar mark while PCLN quietly pushes higher. It does make us wonder all this trillion dollar market cap for AAPL may just be a sign a top is near. No one knows the future, it is best we leave our actions to the price and volume movements and not opinions. For now, enjoy the ride higher!
Now with the FOMC out of the way and signaling they will not intervene with QE3 we’ll get to see what this market is made of. Now, of course any pullback in the equity markets will be met with cries for further quantitative easing. You can bet just like a junky, Keynesian economists will be screaming for the Federal Reserve to pump more dollars into the system. At some point you get diminishing returns and the expected outcomes sour and become toxic to the system. At least for us we’ll be merely following the trend and prepared for whatever the market may throw at us. Ignore the hype and stick with the trend.
This uptrend has been somewhat difficult to handle and has yet to produce large moves in stocks. Sure AAPL and PCLN have been nice, but we haven’t seen too many 100, 200, 300% winners we have seen in the past. Be that as it may, this uptrend still is intact and continues to push forward.
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