Monday, May 06, 2013
NASDAQ and S&P 500 Extend Friday’s Gains
There wasn’t much fanfare in today’s market without any US economic data. In fact, this week will be quite a bore for those who thrive on economic data. AAPL gained more than two percent as the stock has moved off multi-year lows. BAC vaulted 5% on very strong volume has the stock has moved higher from its most recent consolidation. Volume will be ignored until we see a parabolic run in this Federal Reserve highly accommodative environment. The trend is up and it is very difficult to fight this trend. It is nice to see gains were followed through on this time around. Perhaps we are seeing the beginning of a parabolic run or the top for the moment. In the end, we cannot predict the future nor can anyone else. At the moment we have a trend that simply will not quit and we aren’t going to fight this trend tooth and nail for a top. Opinions are often wrong and are very costly and it is best to focus in on price than another input. Stick with the trend. Another “nice” thing we saw today was individual leading stocks breaking out. A few names have potential ending up as new longs for tomorrow morning. Big Wave Trading members will be getting a treat for tomorrow. If you aren’t a member what are you waiting for? Go here to sign up http://bigwavetrading.com/register/. It is vital we have a breadth of stocks breaking out for this market to be able to sustain this uptrend. Get on this Big Wave! Last Friday’s job report was viewed a positive with upward revisions and the headline number not as bad as everyone had predicted it to be. The labor force held steady at 1979 levels while unemployment dropped to 7.5%. Average Hours worked may provide a glimpse into how Obamacare (aka the Affordable Care Act) has pushed many companies to hire more workers but cutting their staff’s hours. How this all works out is anyone’s guess, but having more workers working fewer hours doesn’t feel like a recipe for success. A good start for those who are long the market and tomorrow we’ll see if the Dow can close positive for the 18th straight Tuesday. Cut those losses and ride your winners.