Let The Market Do The Talking

Random Thoughts

As I stare at my blank screen pondering eloquent thoughts, I began to think, why not let the market do the talking?

So, let’s look at the scoreboard:

The Quack tacked on .41%. This action keeps it at multi-year highs.

The Rusty gained just over ½%. This action keeps it at all-time highs.

The Ps continue to lag. They ended up just a smidge. Net net, they haven’t made much forward progress over the last month. Still, they are just shy of all-time highs.

As you would expect, tech is doing well based on the action in the Quack. The Semis accelerated to new highs. Drugs and Biotech eked out new highs. Ditto for Software.

Many other areas are doing well.

Defense blasted to new highs.

The Transports closed at all-time highs (albeit barely).

Aluminum continued to bang out new highs. Ditto for Uranium.

Gold and Silver took a bit of a breather but so far it appears to be just that—a rest. Look for new setups here now that they have begun to pull back.

Not all was rosy in the market. Retail and Consumer Non-Durables continue to slide. It’s possible that major tops could be forming here. Come to the chart show later today and I’ll walk you through it.

Also, with the Ps trading sideways, as you would expect, some “brick and mortar” areas like Manufacturing have also lost some steam.

Overall though, things still look pretty good internally. Enjoy the ride but as usual, continue to do your homework. Take things one-day-at-a-time. And, make sure the weak sectors continue to be just an aberration.

So what do we do? Not much has changed. I’m still seeing a few setups on the long side, especially in stronger areas like Biotech. I’m also seeing transitional setups (e.g. Bowties) in Gold & Silver. Once again, given the overall strength, continue to focus mostly on the long side. I still think it is okay to fire off a short or two in the aforementioned weaker areas just don’t go crazy bearish while the market overall remains in an uptrend. And, you certainly don’t want to attempt to short any of the stronger areas. As usual, wait for entries. As I preach, this can often keep you out of new trouble if the market/stocks fail to follow through.

Futures are soft pre-market.

Best of luck with your trading today!

Dave

P.S. Come to the chart show today if you are not too busy saving lives, building buildings, repairing automatic transmissions, or doing other great things!