For a while, the market was reminiscent of the recent past, bad news from a financial institution, a market just reached its high end of the trading range and up against its resistance. It is also a Monday when people have over-thought during the weekend. But this time, it is different, for one, the tech sector provide the support and leadership of the market, and secondly, there are more beliefs from the investors. At the end, the market staged an impressive comeback in NASDAQ. Even though, the broad market lost a 2 tenth of percent, the volume was extremely low. These, of course, are the encouraging signs for the bulls and it signals the growing confidence of the investors.
In terms of sectors, the steel, coal, agriculture and technology actually went up as soon as the opening bell rang, based on the news that price of steel, fertilizer has doubled or tripled, it is no wonder that the sectors outperformed the market in general and we still believe that there should be more rooms to grow for the sectors.
The major indexes still hold at the top end of the trading range, NASDAQ 100 actually made the new high for the last 8 weeks, if you are investor believing in trend following, you should put your money in QQQQ right now.
$VIX is around 20 and it is lowest in 2008, so, the market may be quiet down for sometime, so, if you are holding a winner, maybe it is the time to continue to hold and take profit slowly.
Tomorrow, we have the number of existing home sale; it probably is not going to good. But does it matter? We will also have a lot of earning announcements; hopefully, we could have some good surprises like last week.
Good luck.
