Picks of the Day October 30, 2017

Market Rallies, Euphoria Absent

Over the last few months, the market set new highs not only on a price basis but also in terms of the narrowness of the trading range and the extent to which volatility has been checked and restrained. All of this was germane on Friday! The NASDAQ let out a huge burst of energy, a smattering of tech giants, namely Amazon (AMZN), Google (GOOGL), and Microsoft (MSFT) whisking the index higher.

It was the second time in just one week that the market was propelled higher by just a few, numbered companies. On Tuesday, Caterpillar (CAT) and 3M (MMM) pushed the Dow to record substantial gains, the rest of the market, though, barely moving.

Narrow markets can always expand their range – and that’s what happened to a certain degree on Friday. If the current rally, though, doesn’t expand to include a larger number of participating stocks, and quickly at that, the basis for the latest movement will become weaker and the chance of a reversal can only grow.

The bulls are continuing to rally and the NASDAQ has once again thrown dust in the eyes of skeptics. The big movement on Friday got a lot of attention from the media, but that was nothing compared to the euphoria the financial media tried in vain to project. Regardless, the upward rally plods on and any attempt to pinpoint when the market has already peaked, is nothing more than a costly, extraneous waste of time.

Have a great trading week!  

Today’s Picks – Day Trading!

New York Strategy Swing

Today’s Picks – Swing “New-York Strategy”

No.1 –   SKX

Risk Rates: Normal – Regular size, High –Consider reducing size, Low – Consider increasing size