Nov 5th 2014 New Highs = Sleeping Soundly

What a boring market, can’t say this week’s market action will keep me up at night.  Investing/trading can be a stressful business and it doesn’t matter if you are losing or winning, you always worry about when the hits will come!

I’m not saying I’m like the guy in the picture, but I have my moments!  That’s why I designed and choose to trade a system rather than using the grey matter between my ears on a day to day basis.

Today, just like yesterday, I grabbed at a little more in terms of gains thanks to the advance in the S&P 500 and the Dow Jones.  With only the Nasdaq being a little drag on things.  Now the elections are over, we can focus on the economy and what is left of earnings reports.

The probability of seeing the market advance further is starting to wane.  However, the market does not follow the herd and price is saying to stay put, so I will.

Market News:

U.S. stocks mostly rose Wednesday, taking benchmarks to historical peaks, a day after elections had Republicans taking control of the Senate and as a report on the jobs market came in better than anticipated.

Republicans gained at least seven seats in the Senate, leaving the chamber’s leader, Mitch McConnell, to control the legislative agenda for the last two years of Barack Obama’s presidency.

Historically, midterm elections come along with healthy equity returns, as investors embrace the certainty, at least in the short term, the results bring.

Bouncing back from a multi-year low after U.S. inventories rose less than predicted, crude futures rose $1.49 to $78.68 a barrel, while gold futures dropped $22.00 to $1,145.70 an ounce on the New York Mercantile Exchange.

Private employers added 230,000 jobs last month, more than estimated and the largest gain since June, according to the ADP National Employment report, which casts a positive light on the labor front two days before the payrolls report.

Reports on the services sector were less positive, coming in below expectations, with one compiled by the information-services company Markit falling to 57.1 in October from 58.9 the month before, while the Institute for Supply Management’s gauge declined to 57.1 last month from 58.6 in September.

Thursday:

Earnings: Disney, AstraZeneca, Siemens, AOL, AMC Networks, Molson Coors Brewing, Advance Auto Parts, First Solar, Cablevision, Echostar, Henry Schein, Apache, Scripps Networks, Wendy’s El Pollo Loco, Lionsgate, Zynga, Biocryst Pharma, Cablevision, Enbraer, Calpine, Windstream, Con Ed, Tekmira

European Central Bank meets

Monthly chain store sales

8:30 a.m.: Initial claims

8:30 a.m.: Productivity and costs

10:40 a.m.: Chicago Fed’s Evans

7:05 p.m.:Cleveland Fed President Loretta Mester

News Sources:  CNN Money & CNBC