The small caps (IWM) have been dead weight for the past several months, ever since June when they topped out above 128. But more recently, the past couple of weeks, the small caps have started to firm up near their September highs. Suddenly this group of stocks looks interesting as they consolidate at this resistance area.
The SPY has been able to rally the past few weeks without any real participation from the small caps. If we do start to get this breakout in the IWM above 116, we could get a new surge of momentum to take the broad market higher. If you’ve been stubbornly fighting the market as it’s grinded higher throughout this month you better pay close attention to the Russell. I would not want to fight this wave if this group of stocks get’s going.Read More
The countdown to stocktoberfest 2016 is already underway.
Leading up to the conference this year, Howard and team repeatedly mentioned how this year was going to be the biggest and best stocktoberfest yet.
And damn did they deliver.
It started with the venue, which was a huge step up from last year. We rallied around the historic Hotel del Coronado which is a gorgeous facility despite its rumors to be haunted.
$SPY we started the week off with on a very bearish tone as we gapped below Friday’s low and continued to trade down to SPY 188. For the rest of the week the market made an effort to stabilize sideways and managed to recover most of Monday’s drop by end of day Thursday. All of the action up to Thursday’s close seems par for the course for this type of environment, but it’s Friday’s session I think is worth writing about.
It was the first Friday of the month so that meant we were scheduled for monthly unemployment data before the market opened. For the month of the September the data came in weaker than expected, below analysts expectations, and the market reacted negatively to it as the SPY traded lower in pre-market trading.
The regular session opened up at the prior two day lows, and we saw price push lower extending losses to over -1.5% to the downside by mid morning.Read More