Today was a light trading day on Wall Street as many await the ECB’s announcement of its own Bond buying program.  Once again small cap stocks lagged behind the general market closing lower by more than 30 basis points.  Volume was lighter on the session and it does not come as a surprise given the magnitude many have placed on the ECB decision.  Crude oil closed higher on the session helping push the energy sector higher.  Energy names were the biggest gainers in the S&P 500.  Many are trying to pick another bottom in energy and we get to see if they are right this time.  Earnings continue to pour in and it is important to make sure you have proper risk management controls in place to avoid any disasters.

This market is trying to work on a new uptrend here and we just finished day 3 of a new attempt at a rally.  Tomorrow’s ECB catalyst could certainly propel us into a confirmed uptrend with a strong price gain and with volume higher.  At this juncture it does not appear earnings season will provide much power to the rally with many companies missing expectations.  At least we have NFLX holding onto majority of its gains today.  IBM did see a bit of support at December lows, but it is not overwhelming evidence institutions are willing to step in and support the stock.  After-the-bell FFIV reported and its weak guidance is slamming the stock.  The complete opposite reaction to how the market reacted to NFLX’s earnings release.  If the ECB is going to be the catalyst it better have a lot behind it to help support higher prices.

Last nights State of the Union address did very little to help spark this market higher.  At this point the currency market is much fascinating due to decisions made by global players.  The Swiss decision to lift the cap to the Euro is a clear sign they are not happy with the ECB QE plan.  Rumors are it is for 50 billion Euros a month and whether not that is true the fact the Swiss backed out certainly speaks volumes.  Partison politics here look like a child’s game where the currency wars of the global powers appears to be much more powerful.  By no means are we trying to figure it out.  We are simply following the price action and will take advantage of this market no matter the direction.

One more day till we get a decision and we shall enjoy the fireworks display.  Remember to cut those losses short and remain vigilant with your risk management process.