VIX is nearing historic lows.

VIX is nearing historic lows.

As the DIA, SPY, and IWM reached out for new record highs with incredible energy, the VIX is nearing historic lows.  Even more amazing is that this occurred after the deadliest mass shooting in history.  There seems to be a voracious appetite for stocks without regard to valuation.  The QQQ’s is the only index lagging behind that as of now continues to be blocked by price resistance.  With the VIX so low it smacks of complacency, but as the money continues to pour into the market, all we can do is stay with the trend.  Stay focused on price and consider taking some profits into strength.  Don’t allow greed to prevent you from banking gains!  I also suggest that everyone has a ready-made plan to avoid poor emotional decision-making if/when the Bulls begin to lose energy.

On the Calendar

Motor Vehicle Sales report is before the market open today according to the Economic Calendar.  It is the only potential market-moving report of the day.  Vehicle Sales are expected to see a significant bump us as a result of Hurricanes Harvey and Irma.  At 8:30 AM Eastern there’s a regulatory reform speech from a Fed Governor but after that a very quiet calendar.

The Earnings Calendar shows just over 20 companies reporting today.

Action Plan

With the market displaying such amazing strength most stocks are well within their move higher.  Before buying anything make double sure you’re not chasing trades that are at or near resistance levels.  They will be the first to be punished if the market loses steam and some profit taking begins.  Make sure only buy stocks that are at or near price support the acceptable risk to the stop.  It’s so easy to get caught up in a market like this and chase due to the feeling of missing out.  Well thought out plans are the best defense for this emotion.  Do it, and you protect your capital.  Do it not, and suffer the consequences of emotional trading.  Did that just sound like Yoda?  LOL

Trade Wisely,

Doug