Indices are in a bit of a holding pattern as the market awaits the Fed decision on interest rates. The ongoing debate now is not whether rates will be cut, but by how much. The Fed meets in 4 business days, but there is some potential that rates could be cut earlier.
Another Friday morning surprise? Perhaps Monday morning after an ugly Friday?
Meanwhile, everyone is trying to draw conclusions about what to make from the day-to-day trading action. We doubt very much that anything meaningful can be drawn here. The QQQQ is trading just over its inverted head and shoulders (H&S) pattern, while the Dow, and S&P have yet to break the necklines of their own H&S patterns.
As noted last week, anything that goes on below the neckline area is just market noise and is insignificant in determining what to expect next.
What is most interesting, however, is the fact that so many tech and energy stocks are breaking out to fresh 52-week highs. It's probably best to just forget what the indices and the Fed are doing and just focus on what is working right now.
Right now, there are a group of stocks heading higher, so buy the dips, keep stops tight and don't pay attention to the market noise.
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