We’re at the end of another week where it seems like the market can only go up without a care for anything else. Meanwhile, we’re also deep into the summer doldrums on Wall Street, when there typically isn’t as much trading volume as people take a break.
The SPDR S&P 500 ETF Trust (NYSEArca: SPY) is making new highs despite a constant barrage of delta variant news and rampant inflation.
Usually when we see that, the FAANG stocks are charging ahead full steam with the rest of the market strapped to their backs…
But with the possible exception of Apple Inc. (Nasdaq: AAPL) in this low-volume market, there’s not much there.
Amazon.com Inc. (Nasdaq: AMZN) gapped down on earnings and hasn’t recovered, and Netflix Inc. (Nasdaq: NFLX) is stuck in the mud.
Meanwhile, Facebook Inc. (Nasdaq: FB) and Google parent Alphabet Inc. (Nasdaq: GOOGL) are hitting resistance near their record highs…
The Hunt for Gains in the Low-Volume Market
No matter how you look at it, the markets simply aren’t seeing the volume necessary to move indexes decisively over the past few weeks.
When markets were in the middle of the 2020 lockdowns, the Federal Reserve and Congress flew to the rescue with trillions of dollars of helicopter money, sending indexes straight up…
But that’s not the case for this go-round, and it seems there are so many unknowns that traders aren’t excited by much at all.
Not even the cloud of potential new lockdowns hanging over the market is enough to sink the travel stocks.
Another industry that’s shown surprising staying power through the low-volume market is footwear and apparel. In particular, Foot Locker Inc. (NYSE: FL) is on my short list of stocks to snag on a pullback. And if you’ve been following the Daily Blitz, that name should sound familiar.
Check out the short video below and I’ll show you how the low-volume market works in detail.
Don’t forget you can follow me @LanceIppolito on Twitter, Instagram and our YouTube channel for more trading insights and tips. And as always, you can find me right here talking stocks and options trading — and printing money — on WealthPress.com!
P.S. Want to Join my Daily Profits Challenge?
Anyone that follows Future of Wealth probably knows the basics of my Weekly Blitz Alerts method:
Wait for the Shadow Blitz.
Place a trade before the market closes.
Cash out, oftentimes the next morning!
When I was on Wall Street, I found that unusual trades were constantly being placed right before a massive overnight run-up.
But they can happen way faster.