The Weakest Week Of The Year Versus A Low Of Significance
First, let me state that this week is the weakest week of the year for the stock market. That’s inarguable. It’s just data and facts. On Twitter last week, I posted that if Wednesday’s low has significance then stocks will rally this week. Of course, folks pushed back about the weakest week.
The bulls had a monster day on Monday while I wasn’t watching. Funny how the market does that to me sometimes. Don’t get me wrong. I am not complaining! Price action was universally positive. The underpinnings were weak. More stocks made new lows than new highs. There were only 242 more stocks going up than down on the day. And while it was the first day of the week, the Volatility Index (VIX) actually rose when it should have declined.
The NASDAQ 100 is below. Ya know what was interesting about Monday? The index rallied back to the area I have discussed since June. What now? Unless the index immediately dies, it is going to new highs, and soon. What about the correction I have been watching for all year in Q3? Let’s see how this strength unfolds this week.
Lest you think Monday was all rainbows and unicorns, below is the Russell 2000. The S&P 400 looks similar. Neither are making new highs anytime soon. That is a longer-term issue.
On Friday we bought JAAA, IAK, XLE, more QQQ, more SPHB and more FAUG. We sold some MQQQ, some QLD, some IYR and some BUG. On Monday we bought ITA, EMB, CMG, more MQQQ, more COST and more HD. We sold SPLV, some MQQQ, some QLD and some MRNA.
