Much of the day the Nasdaq appeared to be well on its way moving higher on excellent volume. Crude oil was moving lower as headlines over an OPEC deal were pessimistic about a supply cut. Volume was higher across the board as the hangover from the long weekend wore off. We have moved quite a bit since the election and we have been waiting for the market to take a breather. Unfortunately, the Nasdaq did not come along for the ride and remains stuck near a breakout level. For now, we still are in a favorable position on the long side of the market for end-of-the-day trading. Our job is to continue to hunt down new long signals and execute our money management process.

If we can continue to see this market build right side of bases we should have a powerful rally through the year end. Yes, we do have a rate hike to contend with and odds point to a quarter point hike. What that will do to the stock market and even the bond market remains to be seen. From what we see from the equity market is continued positive price action and thus expect this market to continue its march towards setting more and more all-time highs.

For now, the trend is our friend and while small cap stocks take a breather we will shed the weak stocks in favor of strong stocks. As always, we will be looking for intraday trades pointing out stocks in our chatroom. Enjoy Wednesday and the release of the Fed’s Beige Book.