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Bulletproof Market Shrugs Off the Negatives

Wild speculation in pot stocks and IPO names was a notable characteristic this week.
Comments

Neither negative seasonality nor trade wars could hurt the market this week. The S&P 500 managed five positive days in a row.

Big moves in Apple (AAPL) on tariff concerns and new products impacted the indices quite a bit. Indeed, it was mainly the bigger names that helped the market this week. Action in small-caps was choppier but the number of new 12-month lows stopped growing as the bounce action built into the end of the week.

One of the most notable characteristics of the market this week was some very wild speculation not only in pot stocks such as Tilray (TLRY) but in recent IPOs like NIO Ltd. (NIO) and Qutoutio (QTT) .

Contrarian bears will argue that crazy action such as this is a sign of excess and a possible top but that sounds like a pretty desperate call by pessimists looking for something to justify a negative stance.

While the constant hurricane coverage Friday impacted the emotional feel of the market the market refuses to embrace a negative narrative. Next week we will hear more about seasonality and trade wars but the market can't seem to find any news that affects it for long.

The trading is more difficult than it was in August but it is still quite positive. The easy thing to do is to keep looking for a reason while it should reverse. The hard thing is to keep looking for what can go right. Until the character of the action changes, stay with the trend.

Have a great weekend.

At the time of publication, Rev Shark was long NIO.