The indexes started off poorly this morning as China trade issues were once again cited for the weakness. Dip buyers have grown numb to that excuse for selling, and they immediately jumped in and pushed stocks steadily higher.
Fed Chairman Jerome Powell could have easily given the market some excuse for selling, but his testimony before Congress was benign. The market has accepted that there are no more rate cuts coming soon, and it is content with the Fed's current posture, which is to remain accommodating as the economy expands.
It was a steady uptrend until a headline hit that the Chinese were backing away from making the agricultural purchases that were at the heart of "Phase One" of the trade deal. The indexes dipped sharply on the news, but bounced back and had nearly recovered all the losses by the close.
The China trade drama has been going on for 18 months now, and market players simply don't believe much of the news flow. The headlines are just setups for the next trade. We all know that bad news will be quickly followed by good news, so why should we sell?
Once again strength in Apple (AAPL) did some heavy lifting and provided a bit boost to the indexes. Disney (DIS) turned into a momentum stock on news that its streaming service attracted 10 million signups. It closed at a new high on big volume, as it was chased higher all day.
There were some interesting momentum plays such as Datadog (DDOG) , and I saw more entry points of interest than I've seen in a while. With the indexes churning so much lately, it isn't too surprising that some better charts are emerging.
After the close Cisco (CSCO) issued soft guidance and is trading down around 4%. That is hurting the Nasdaq 100 (PowerShares QQQ Trust (QQQ) ) a bit, but overall technical conditions remain quite good. With Apple as leadership, there isn't much that the bears can do.
Have a great evening. I'll see you Thursday.