Buy With Both Fists (CTRL-A/CTRL-C/CTRL-V)
By Dave Landry | Random Thoughts
Random Thoughts
The market had a little pre-holiday cheer.
The S&P didn’t set the world on fire but did manage to close at all-time highs.
The Quack looked better. It gained well over ½% to close at multi-year highs.
The Rusty also managed to tack on over ½%. It closed at all-time highs.
Internally things looked pretty good. This isn’t a shocker with strong Rusty. Many areas remain in trends and at or near new highs such as Defense, Regional Banks, Conglomerates, and Health Services.
The sideways Semis put in a decent rally. They appear to be trying to break free from their range.
Once again, selected Solar did well on Tuesday (we are long TAN).
I tried to come up with something new to say but then realized with the market continuing to make new highs, there’s not much new to say. With that said, it’s a cntrl-a, cntrl-c, and a cntrl-v:
So, things are looking pretty good. Should we buy with both fists? Well, since the methodology requires a pullback and the indices and most sectors are right at new highs, I’m not seeing a lot of meaningful longs for this cycle (yet). On follow through and a pullback we will. When markets are banging out new highs, it’s a get ready to get ready for me. In the meantime, you want to manage existing longs. Take partial profits as offered (see Layman’s for money & position management planning) just in case the market does not follow through. On the short side, I’m still seeing a few that are setting up. Avoid getting too bearish but if you really really like a setup, then take it. See my 11/26/13 column for a philosophical discussion on this.
Futures are firm pre-market.
Shortened session today which is notorious for being then and choppy. So, pick your spots carefully.
Best of luck with your trading today!
Dave
