Markets Higher

The markets moved higher on extremely light volume today. Mondays are often like this, especially following the Super Bowl last night. Remember, light volume favors the upside and today is no different.  The SPDR S&P 500 ETF (NYSE:SPY) is trading at $132.30, +1.15 (+0.88%).

The markets continue to show amazing resiliency. One day sell events seem to occur every few weeks but are negated within one or two days, then the market surges higher. The Federal Reserve continues to keep amazing pressure on the markets to the upside using QE-2.  This $600 billion is being used as POMO (permanent open market operations) daily. In this manner, as long as volume stays light, the Federal Reserve, through the banks, can keep the markets moving higher. This is very artificial, and the risk of another flash crash increases daily, but they could push the markets up for months more before it happens.

Major stocks are performing well today on this broad based rally. Apple Inc. (NASDAQ:AAPL) has moved above the $350.00 level. It is now trading at $352.80, +6.30 (+1.82%). Exxon Mobil Corporation (NYSE:XOM) is shooting higher again and International Business Machines Corp. (NYSE:IBM) is just under the $165.00 level.

While the markets remain extended with no sign of anything more than a one day fall every few weeks, we must respect the power of the Federal Reserve.  They have the power as long as volume stays light to keep the markets going higher. Today we are seeing that.

About Gareth Soloway 168 Articles


Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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