Quick Market Recap:

The market once again grinded its way higher today; at the close the SPX/Dow gained +0.50% while the Nasdaq/NDX gained +0.70%. Commodity wise, crude oil gained 0.90 cents while gold fell $3 and the US Dollar was higher. 

Today was the lightest volume day of the year!  We are in the summer doldrums. 

Tomorrow of course is a FED day and the FOMC statement will be released at 2:15 EST.  It is not expected that the FED will change rates, it is what they say that will be closely monitored by the market, and of course it's not what they say, but the market's reaction to those numbers that counts!  I have been closely monitoring long term Bond Yields and have wwatched them continue to drop to new lows; maybe Bond Traders are anticipating what the Fed will say, such as renewed talk of monetizing the debt etc, it will be interesting. 

Regarding the market, it has had a nice rally from a logical 38% retracement off the July lows.  The concern in the short term is the declining volume and obvious rising wedge patterns with negative divergence.  If the market pulls back, we will be watching the uptrend lines of these wedges. 

As far as the big picture of the market , all of our intermediate indicators remain on buy signals from weeks ago and most of our long term indicators are once again on buy signals.  Therefore it will be interesting to see how the market unfolds over the next week and the rest of the year.  My question is, do our long term indicators remain on buy signal or do they flip back to sell signals again in the future?

Otherwise, what has worked in this market is trading individual stock setups with good patterns that are taking volume, the watchlist has been loaded with long trade ideas that have provided nice trades.

Trade Ideas and Watchlist Comments