A less than stellar retail sales report couldn't keep the market down today. Volume jumped over Monday's super light trading volume. It isn't a surprise to see Tuesday volume higher than Monday, but nice to see where the market reverses its early morning losses. The story today was Icahn announcing his position in AAPL. Begs the question, didn't Ackman do the same thing with his HLF? And the reason Icahn went long HLF? Certainly doesn't matter to us, but seeing hypocrisy in this world isn't very hard to find. At the end of the day the push in AAPL gave a big boost to the NASDAQ. Another solid day for the market and our uptrend and we are going to continue to stick with the trend.
It is truly amazing to continue to see people fight this trend we have been in since November 16th. Sure, at the end of 2012 the market was shaky. Had you paid attention to leading stocks you would have likely ignored the noise coming from the Fiscal Cliff discussions. While DC may not have solved all the issues it was enough to help propel this market to new highs set recently. The moral of the story is to stay with price and forget everything else.
At the moment it appears the market is digesting July's gains quite well. Yes, we do have some distribution in the market. However, the distribution days are far from being devastating. On the flip side we continue to see leading stocks acting strong. In what kind of market would you have leading stocks acting weak? One nearing a correction is this answer. This may change over the course of days or weeks, but what we have now is a normal uptrend. Stick with the trend and Big Wave Trading.
Obey the cardinal rule of cutting losses and riding your winners.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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