Markets drifted mildly higher all day on Tuesday on relatively low volume. This allowed the SPY, DIA, and QQQ all to close at another all-time high. So all-in-all it was a very blah day in the market. That said, we remain extended and the VXX continues to be in "dangerously complacent" territory.
In economic news, the President said Tuesday that trade talks “are in the final throes of a very important (Phase One) deal.” This came after the Chinese had announced the previous night that a phone call had been held between chief negotiators. Markets did not react to President Trump’s statement. (Perhaps this was because of the prior overnight announcement or maybe just fatigue of posturing around such a deal.)
On other fronts, the FAA has said again that the BA 737 Max is not ready for recertification (and that it will take all the time needed to reevaluate the plane). This statement completely contradicts BA claims that it will resume deliveries of the 737 Max in December. In fact, the FAA said the Max won't even make its recertification flight until mid-December and recertification may well take through the end of January. (I'm not sure how BA plans to deliver planes if they cannot fly them to the customers.) This news might have an impact on BA stock.
Major economic news for Wednesday includes Oct. Durable Goods, Q3 GDP, and Weekly Jobless Claims (all at 8:30am). This is followed by Oct. Pending Home sales and Crude Oil Inventories (both at 10 am). The only earnings of note are DE, who report before the Open.
Overnight, Asian markets were in the green. In Europe, the major markets are also in the green at this point. As of 7:30 am, U.S. futures are all pointing to a gap higher of between a quarter and a third of a percent.
While there is a fair amount of economic news today, it’s quite possible that many traders have already called it a week going into the holiday. Even if this is not the case in the morning, expect light volumes in the afternoon. The point is that it is quite possible we see another low-volume blah day in the markets.
Even so, the bulls have really been relishing their all-time highs. So, we may move higher, even on lower volume. As always, continue to lock-in profits, move stops, and trade your plan. Remember that your job is to make consistent gains and reduce risk, not to hit home runs every once in a while.
Sorry, no Swing Trade Ideas for your watchlist today as trading should be light before Thanksgiving. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
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