I have to admit that this has to be one of the most impressive climbs that I have ever seen out of the market in such a short period of time – in fact it defies logic, honestly. Nonetheless, it is important to remember that bearish news is largely ignored during a bull market and bullish news is ignored during a bear market. With that in mind, this rally is likely to see its first major test of this rally tomorrow, as Microsoft (MSFT) missed earnings. That has the QQQQ and other ETF’s trading down as much as 1.5% after hours.
Tomorrow will be a quiet day for me from a trading standpoint as I will not be trading at all. Down -3R on the week is an indicator that I need to put the breaks on. A late day short trade in the S&P had me stopped out. Always looking for some lessons learned, I probably traded with too tight of a stop-loss, which made me exposed to the slightest hic-up that the market could have. I was barely stopped out, and while I didn’t stand to profit a lot from the trade had I not been stopped out, I could have at least broken even.
Trading will not always go ones way. I’m still trading with a 66% win rate on the month, and still up overall, however, I’m going to give it a break tomorrow. Come Monday, I have some time off from trading and will be ready to get after it.
Here’s the NASDAQ and S&P charts…