Markets Shrug Off Comey

 | Jun 08, 2017 | 4:50 PM EDT
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Stock quotes in this article:

IWM

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baba

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nvda

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QQQ

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tsla

The headlines were all about the James Comey testimony today -- and the political posturing -- but it really didn't matter to the stock market. It filled up plenty of time on the business channels but stocks were not at all impacted by the news.

The only difference this drama made was that it provided some context for the program trading that occurs in reaction to price movement. There were a couple "buy the dip" reactions during the day, but there were some new developments as well. The Russell 2000 ETF (IWM) trended straight up most of the day and outperformed the other indices which has been rare in the past couple months.

Despite a huge move by Alibaba (BABA) and Nvidia (NVDA) the Nasdaq100 ETF (QQQ) struggled for much of the day before a last hour rampage that took the stocks back near the early highs. Breadth was solid but, once again, the indices didn't move much. Both the S&P 500 and Dow Jones Industrial Average were close to flat and overall volatility was quite limited.

It was basically the same sort of action we have had for a while and all the drama out of Washington didn't change a thing.

Tonight we have the UK election, which may be another 'trigger' for some setups. Everyone knows if there is a gap down in the morning it is going to be a buy, so it probably won't occur. If this market is going to sell off it isn't going to happen at the open.

Even the bulls are willing to admit there is some frothy action in some names like Tesla (TSLA) and Nvidia (NVDA) but they are working and when something is working you can be sure that the momentum traders will continue to chase.

The bears keep looking for a news event that will serve as a catalyst for a selloff, but a market correction is probably going to occur when there isn't any obvious news. Traders are just too well trained to buy negative reaction to news events.

Have a good evening. I'll see you tomorrow.

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