The market avoided a day of distribution despite early morning losses. A negative housing report soured the morning mood as sellers dominated the morning trade. Buying kicked in just afternoon time as upside volume begin to emerge. The end of day action wasn't ideal as a slight pull back from the day's highs was a bit disappointing. However, the support at the lows is something unmistakable as this uptrend continues to prove to be unstoppable.
At some point, yes this uptrend will cease and we'll get a correction. No one can predict when we'll get a correction. Distribution count on the S&P 500 is 4 and the NASDAQ sits at just 2. While the S&P 500 distribution count nears an area of concern the NASDAQ remains in the clear. Of course further selling on volume would change this, but we'll wait and see.
AAPL was a big part of the market's rise from the bottom. Early morning sellers were eager to take down the stock after it closed above $600 for the first time. Closing near the session highs on above average volume was a clear sign institutions stepped in and supported the stock. One thing to note, the stock closed again at another all-time high. Tough to be bearish on the stock right now, unless of course you like to pick tops and in this case you have been wrong quite often.
Another big winner on the day and for BWT members was KORS. KORS had a bit of trouble during mid-day, but buyers jumped in and pushed the stock higher closing just below its high of the day. The company raised its guidance and the market rewarded accordingly. KORS a recent IPO, continues to show strength and is a staple of the BWT portfolio.
In earnings news, ORCL posted better than expected earnings. The stock rose 1.5% at the close of the after-hours session. The stock was up more than 3% during the after-hours session, but was unable to hold onto its gains.
This uptrend remains tricky and will continue to frustrate investors. Stick to a disciplined approach and BWT. Cut those losses short.
Disclosure: I am long KORS.