TUESDAY:
Not much to drive the market Tuesday with no scheduled economic data, earnings winding down, and no FOMC meeting this week. Wow. The market will be on its own much as it was Monday. We don't want to see any more low volume gains, however, regardless of the lack of catalysts. When that happens the market can get too far ahead of the buyers, and become susceptible to selling. The indices are showing better action, but with the Fed hiking and oil rising it does not take much to throw a move off track. Good underpinnings to this current move and a nice lateral rest is thus far good action.
Tuesday we anticipate another lackluster session as stocks work to shake out the last pessimists. Without any real catalysts and given the low volume the past two sessions the market is playing a waiting game for the next trigger higher. The action remains beneficial, however, as we saw more leaders continue higher. Leaders tend to lead, and that action still speaks well for a continued upside move.
Given the circumstances we will continue to look for solid stocks showing solid moves in anticipation of another break higher. As noted above, stocks on upside moves tend to make a run, pause, then make another quick run. That is why we look at leaders and move into them as they show strong breaks higher or rebounds off of support. They set up for the moves and are ready to run when the market comes around to follow them. Right now it is still setting up to do just that. |
