This week we come to the end of a volatile week in the markets as we saw a couple of large big moves both up and down. There is a lot of concern right now with what is going to happen with the global economy. This week we saw the FOMC meet and release some data about what they feel is happening with the US economy. While they did not increase or decrease rates, they did make some comments about what may happen going forward.
While we do not have a lot of big news coming out this week, there have been some comments from President Trump in regards to North Korea that may cause additional volatility this upcoming week. As always, make sure you are using good risk management in your trades.
This week we saw a strong move up in Apple Inc (NASDAQ:AAPL) after some comments that were made. With a big move like this, we need to be prepared for a bit of a pullback moving forward. Regardless of the stock, a big move like this can be exciting but we need to be prepared for a bit of a retracement.
Let’s take a look at how the markets performed this last week.
DJ-30:
After the strong move up last week, this week we saw a drop back down. Thursday had a strong move up, then it dropped hard on Friday. While the moving average is still moving higher we will need to see if it can continue to trade above it. Right now, the overall bias is still bullish and after a pullback like this, we may see some opportunities to go long as the setups happen. Keep an eye out for these types of trades.
SP-500:
The S&P 500 this week pushed into new highs for the year, then dropped quickly on Friday to close near the lows for the week. We are still seeing a strong bullish bias and will continue to look for setups to trade in this direction.
NASDAQ:
The weekly chart on the NASDAQ is still showing the strongest movements and while making new yearly highs, it closed near the low for the week. This may be a sign that the prices are wanting to move down for a bit. If the bears come into the market we could see a bit of a retracement over the next few weeks.
In the end, we need to recognize that even with the strong bullish movements we have been seeing, we are due for a more significant retracement in the markets. While we won’t say it is going to happen immediately, we do know that it is going to happen at some time. We will be looking for the areas of support to be taken out in order to have a confirmation of the bears coming in and pushing prices lower. Always use good risk management and know where you are going to exit so you can control any losses that may happen.