Daily Commentary: July 10, 2025

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No News Is Good News

Posted by Pete Stolcers on July 10
www.oneoption.com

The headlines are light this week and traders are waiting for earnings season to start.

PRE-OPEN MARKET COMMENTS THURSDAY – The path of least resistance is higher, but sellers made their presence felt yesterday. Wednesday the market gapped higher and it was immediately smacked down. That reversal had a chance to gain traction, but buyers stepped in before the momentum could build. A gradual grind higher almost pushed the market back to the high of the day.

No matter how wimpy and tenuous this rally feels, the market won’t have a sustained decline without bad news. The bid is simply too strong. That means that dips are buying opportunities. This morning initial jobless claims dropped to 227K and that is market friendly. The 10-year bond auction went well yesterday and there is a 30-year bond auction today. Hawkish FOMC Minutes didn’t deter buyers yesterday.

Banks will release earnings next week and bad loan write downs and credit delinquencies will provide some insight on the health of consumers. Conditions change gradually and I am not expecting any shocking news. Analysts have dramatically lowered the bar for this quarter so there should be plenty of “beats”. Valuations are stretched and the market is priced for excellent results.

I like focusing on very short term trades right now and my goal is to find a few good ones each day. Although I prefer to trade the long side, I am seeing some good shorts as well and on a day trading basis I am fairly market neutral. As long as I can find stocks with RS/RW that have good volume I don’t care which side I am on. I am trying to time my entry based on market conditions during the day.

I highly suggest that you use heavy volume as a variable in all of your searches. During the middle of the day, look for volume spikes on an M5 – M30 basis in Custom Search.

Support is the low from yesterday and resistance is the all-time high.

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