Market Resilient After Some Headwinds

Dow: +34.72…
Nasdaq: -25.12… S&P: +0.99…

Declines in biotechnology shares dragged down the Nasdaq, pressuring an index that has soared so far this year.  The Nazzy fell 0.4%, but is up more than 8% in 2017, outperforming both the Dow and the S&P 500, which are up more than 5%. The tech-heavy index has closed at a fresh high 19 times so far this year— most records in a year since 1999.  Bull market much?

There were some moving parts today and the market had every reason to tank, but it didn’t. First off, there was strong chatter that Trump’s infrastructure plans would be delayed. This hit steel and metals and mining, but not the overall market.

Trump also reiterated his interest in the border tax. This is bad for retail. Retail tanked, but not the market.

So, as I said last night, even though challenges will be thrown at the market, it’s affecting individual stocks and etf’s, not the overall market… least so far.

Crude oil held solid gains following a better than expected EIA inventory report.

Treasury Secretary Steven Mnuchin says Trump administration anticipates tax reform by August.

The market continues to hang around the highs and it has baked in a lot of market-friendly things like lower taxes and less regulation. Now those things actually need to happen or we could be in for a jolt, but so far so good.  Stay the course for now.

Over the last week or two, I have been raising stops and some got hit today, but at great profits. I will watch these stocks and wait for them to set up again, so we can maybe take another bite at the apple.

As you know we stopped on ACIA yesterday and as I said last night somebody must have known something because it acted poorly from the get go for us to get stopped so quickly.  They reported after the close and it dropped 20%.

I did nothing with YRD today (mentioned as one to watch last night). China stocks had big problems today See SINA.  I’ll keep an eye on it.

Note…..although biotech sold off a bit today, it was orderly and not on heavy volume.   Key moving average support is still fully intact and is holding fine for now.

Please check the P&L for any stop adjustments.

Have a great night.

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