A More Normal Stock Market?

THE WEEK

All it took was the FOMC announcing no interest rate hike this session and the Markets went up hard.  The higher interest rates have caused a lot of industries to slow down.  Any company using debt to finance their daily operations was especially hurt.  The other economic news announcements only cause the price/action to further climb.  The VIX which  measures the sentiment of the market dropped hard as traders become more confident of the Market.  Remember the VIX is a inverse indicator meaning when the price is going down traders are less fearful. 

We saw high average volume with increase buyers flooding back in.  Buyers pushed the Accumulation Distribution from a D- level to a B on the SPY and from an E to a C on NASDAQ.  That is a significant change.

LOOKING AHEAD

I believe we have entered a new phase of the Market with increased confidence and higher trading.  I further  believe the Price/Action will continue to climb just not at the same acceleration up we saw last week after the FOMC announcement.  It is time to readjust the type of trading styles we have been using in the chaotic meandering down Market of the past 4 months.

HOW AM I DOING?

Investing Buddies had our live event last week.  It was a total success and a lot of fun:  great sessions, good food, and best of all, a great group of traders sharing trading ideas. 

My trading sucked.  I didn’t have a lot of time by myself to review and think about trades as the dramatic change happened with the FOMC announcement.  I have one bad position that creamed my portfolio, FTNT.  That happens occasionally to every trader.  It just especially hurt as I was distracted and unfocused.

This week’s Deep Dive this week on Thursday is about the Market price/action change and a trading style that works well as the prices zoom up.

  ACCELERATOR Trades