Rally Continues; Nasdaq Joins The Rally
After struggling for a few sessions, the Nasdaq decided to join the rally today. Volume was lower across the board. We did see some consolidation early in the session, but buyers were not ready to give up just yet. We were looking to see some consolidation in Small caps and the Dow, but buyers had other plans. Consolidation does not have to be very long. Two or three days of light volume selling or sideways action would do this market some good. If we get acceptable price consolidation, we have the potential for some serious setups. Could this be the beginnings of a great year-end run?
Aside from our end-of-day setups beginning to take shape there was some high drama from an intraday standpoint. Shippers have been a hot group and none hotter than DRYS. The stock began its move around $4 and has not looked back. This morning we saw the stock hit $60 and it didn’t seem like it could go much higher. Well, just when you think something is done it continues to push higher. One hundred and two was the high price of the day. What an incredible run the stock went on today and it goes to show you trying to fight an uptrend you are likely going to lose. There were plenty of traders looking to pick a top only to get steamrolled. Many of who went quiet as the stock headed towards triple digits. If anything, those who were shorting the stock learned a valuable lesson other than fighting a trend: humility.
There are plenty of end-of-day patterns beginning to emerge and with a little help from the market we could see some powerful setups. Anything is possible and as we head into the Thanksgiving shortened week we can only hope this market can take a rest. The next headline events are the November jobs report on December 2nd and the Federal Reserve meeting on the 14th. Odds are we are going to see the Fed hike rates once again. However, the only hiccup may be less than ideal economic reports. None bigger than the jobs report once again we get to hear how important this job report is. In the end, price is all that matters.