The market quickly erased majority of Monday's losses in one session. Volume rose across the board from Monday's level. Monday's have been for quite some time light volume days and higher volume kicking in today was not a surprise. Banks led the way while Small caps lagged along with the Dow. One day does not make a new trend and why we weren't quick to jump off the bandwagon yesterday. Volume on the NASDAQ has been above average both days this week and we'll need to see some price movement with this volume. We remain in an uptrend and will continue to act accordingly.
Interestingly enough the QQQs have flashed a new Downtrend in our short-term trend following signal. It could very well be false, but a signal is a signal. IWM and SPY still remain in their uptrends for now. However, the FXY continues to fall as the Yen weakens considerably. It has been quite some time since we have been witness to this type of a collapse of a currency's value in quite some time. If you have a process born from rigorous testing you follow it religiously. Stick to the plan and execute!
Tomorrow we will not have any major economic releases. Today we did get January's ISM non-manufacturing reading. Expectations were for a reading of 55 and the print was 55.2. The market rallied on the news of beating expectations by .2! December's reading was revised lower to 55.7. New Orders declined from last month's pace leading a few to believe the index will be heading lower this month. Bottom line the market liked the number and pushed higher.
This week we'll certainly need to see last week's high taken out if volume continues to remain above average. Remember, to cut your losses!
TICKERST TRENDTREND CHANGEDATECLOSE%
UNGDOWNTREND NO CHANGE2/5/201319.182.73%
GLDDOWNTREND NO CHANGE2/5/2013161.96-0.02%
FXYDOWNTREND NO CHANGE2/5/2013104.78-1.37%
TLTDOWNTREND NO CHANGE2/5/2013117.02-0.89%
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.