Good Morning Friends.
The big move in oil yesterday inspired the bulls yesterday to reach out for new record highs in Dow but that early enthusiasm seemed to fade as the day progressed. The SPY, IWM, and QQQ all turned in bearish signals and a concern that the bull run could be running out of energy. Clearly, we are short-term overbought but the question is will the indexes actually pull back strongly or could it be just a choppy resting consolidation? I don’t have an answer to that because my crystal ball is on the fritz but do think that the bulls have been very hungry for a long, long time and don’t think they will give up easily.
Once again we have Fed members out today in what has become a nonstop conversation about interest rates. Will they, won’t they blah, blah, blah. Here’s a thought, shut up and make a decision! Of course, we have the normal jobless claims this morning as well as ADP, ISM, PMI and pending home sales numbers out this morning that could move the market this morning. However, my guess is we will see a choppy low volume market most of the day as we wait for the big Employment Situation number on Friday morning.
The long and short of all this is to be a little cautious this morning and avoid chasing into positions. Good things come to those who maintain their discipline and resist emotional decisions. Have a fantastic day!
Trade Wisely,
Doug
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