Decision Point After a Rainy April

The last few weeks of April have featured plenty of rainy days outside as well as inside when we stare at our screens in the market. Equities have worked through many a sloppy open in recent weeks, including this morning's, despite a legitimate market monster leader like AMZN green after earnings (albeit well off its own highs of the session). Indeed, the "FANG" stocks are tough to bring down, as FB and GOOGL are all likely to finish positive on the week after their own reports. AAPL is likely to finish slightly down on the week, but it is far from a bloodbath there. 

Overall, the sputtering nature of upside momentum in the even the most enticing of individual long setups and lack of follow-through in the basing sectors has been the most frustrating aspect of the market of late. As we have been noting with Members, our best counter to a market like this is to not become dogmatic, trade with less frequently, and respect key levels. 

The $225 level on the IWM small cap ETF is one we discussed often. And that is still holding as I write this. But also conned the $335 level on tech's QQQ ETF, below on the daily timeframe. 

In other words, despite how ugly this market feels and looks in the short-term, those initial key levels have yet to succumb. That is not to say I will hold all longs until they do. But I am a bit more apt to let dip-buyers try to do their thing before heading entirely to the sidelines or even attempt to short. 

On the long side, OSTK and GME are some interesting outperforming issues in retail, though upside momentum even in those names is far from dazzling. 

Equities sure seem to be at the proverbial fork in the road as we segway into the month of May next week. There are many working theories out there as to what happens net, everything ranging from horrifying hyperinflation to an imminent deflationary crash. In reality, staying flexible and rolling with the punches at this particularly moment is probably the best strategy for most market players.