Small caps lead the market higher today rebounding from last week's losses just ahead of the first quarter earnings season. The market has been finding buyers after 3:30 pm EST and today was no different. Buyers helped push the market to the highs of the session. Volume continues to be extremely light on positive days. A show there isn't much institutional support, but enough to push the market in positive territory. Our uptrend remains intact despite the lack of volume and we'll continue to look for higher prices.
We did not get any economic releases today and tomorrow will get a read on wholesale inventories. Not exactly exciting and nothing historically has moved the market very much. Wednesday we'll get the FOMC meeting minutes at 2pm. A few Federal Reserve members have noted curbing asset purchases may help reducing the risks associated with printing to oblivion. It'll be important to see how the market reacts and closes on Wednesday. Tuesday's action isn't likely to have any catalyst to change trend as Wednesday does. However, anything is possible and as long as you have a plan you'll be in the driver's seat.
The big mover has been the USDJPY and the Nikkei. Central bankers in Japan have jumped the shark and have gone all-in on purchasing Japanese debt. For three straight quarters Japan has seen negative GDP growth and prospects remaining bleak. Again, the world is expecting a central banking cartel to manage using decentralized data. Bond purchases have not worked in decades and it is likely this round of unlimited purchases will have very little long term success. Will we get another Zimbabwe? Time will tell.
Stick to your game plan and remain disciplined.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.