The View; Resting or Stalling?

The SPY started the year with a bang, currently it’s up 3.2%, however the bulk of those gains came on the first hour of the first trading day of the year. To be exact, 2.5% of the 3.2% year to date gain came on the first day. The same could be said for the IWM. up 3.6% for the year in which 2.9% of that came on the first day, pretty much in the first hour. This was all fine and dandy because stocks started to act well after the initial thrust, but now they are starting to rest/stall. Base on my definition of a good set up I’m not seeing many, many breakout are not following through a handful are being faded, and most need some time, which is the opposite of what we saw the first few days. For now we don’t know for sure if we are resting or stalling, we won’t know until after the fact, take one trade at a time and see things for what they are and not for what you want them to be.

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