Just like that, the last week of summer is upon us folks. Theoretically we should have volume picking back up after Labor day. SPY traded at 58% of its 20 week average volume last week to give an idea of Summer volume levels. But alas, the market continues to grind higher. We have to stick to the script until the market tells us we shouldn't. We're currently gapping up about a half percent in the S&P so if we walk into that type of Monday morning gap up, we know to be patient off the open as that gap loves to fill.
Apple and Tesla's respective stock splits take effect this week. Tesla closed 38% higher since announcing the split on August 11th and is up a staggering 513% since its March lows. Apple is up 15% since announcing the split in their last earnings report. Generally, we see big stocks like this run after they split their stock, but with such big runs going into the actual splitting, will these guys continue to have the juice to lead the market higher? We'll have to watch how those guys act post split this week.
I say this every week but it's very simple; until we see some real selling, the trend is your friend. Stocks can continue to rise until they don't, so don't overthink it too much.
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