Nasdaq led the market higher Monday with volume coming in higher than Friday’s pace. TSLA was a big component behind the rise in the Nasdaq 100. Energy led the S&P 500 as oil climbed back above $20. We would not describe Monday’s session as a big day for the market, but it was good to see the Nasdaq continuing its dominance with volume behind it. Issues remain regarding opening the economy back up and the ramifications. We do not possess a crystal ball looking into the future. Our future is unknown, and we must come to the realization we are unable to predict what will happen next. Price is everything. The Federal Reserve pumped trillions into this market, and we cannot ignore this fact. A pullback would do some good here allowing the market to digest the move off the March lows. Now is not the time to be a hero. Stay disciplined.

There is much being said about the current state of the stock market. We are not short of opinions as to why we are currently. Listen, we get it. The economic toll we will have to pay for completely shutting down is not something anyone fully understands. A point could be made we will never really know. It will not stop many trying to figure this out. How will the airline industry come back? Who is really going to take a cruise? There are stories about restaurants who want to open, but employees cite their unemployment checks as reasons not to come back. We are not experts in pandemics and while we advise everyone to critically think, it is best to adhere to guidelines laid out rather than an uninformed opinion. Given the Federal Reserve’s influence the Stock Market is simply reflecting the new wave of stimulus and not the economic reality. So be it. Play the cards dealt.

As this week presses forward, we still have earnings pouring in. Please make sure you know when your holdings report. Entering a new position? It is best you know when the stock reports. Otherwise, you may find yourself in a tough spot. Risk management is the key to success. Knowing when to enter is important, but position sizing and exits are just as important. Pay attention and have a plan!