Be A Good Little Technician–If It Goes Up, Buy It

Random Thoughts

Although the indices ended in flatsville, there’s a little more to the story. The market started strong, dipped, but then came back later in the day. It was good to see players come in to buy the dip.

This market has a bid to it.

The sector action was decent. Semis, Health Services, Energies, Foods, and quite a few others banged out new highs.

Utilities which just recently appeared to be rolling over are now making new highs with a vengeance. They are acting more like hot technology issues than the sleepy stocks they normally are. Hey, I don’t care. I’ll buy anything that goes up. One of my friends once said that if Dave heard that intravenous drug use was on the rise, he’d buy needles. Now, I don’t think I’m that bad but again, I will buy anything that’s going up. That’s what a good little technician does (or as some call me, a trend following moron: www.trendfollowingmoron.com, yeah, I own that domain too). As usual, just don’t confuse the issue with facts (yet another Dave domain: www.dontconfusetheissuewithfacts.com). As I said in Thursday’s chart show, I once laughed at an IPO setup because they made Yoga clothes. I then watched them climb 40% over the next week. That was the last time that I confused the issue with facts.

Anyway, I digress. Where was I? Oh, markets.

Gold stocks, especially the lower tiered ones mentioned earlier this week, blasted higher. The Gold Minor Juniors gained a whopping 7% on Thursday. You’re welcome. You see, this free column/newsletter is good for nothing!

REITS which were just recently looking questionable are coming back.

All isn’t great in the world though. There are some pockets of weakness out there. Retail, for instance, remains dubious.

For the most part though, things are looking good. The rest of the world agrees. The E-Fah (EFA) shares gained over ½%. This action puts them at  6-year highs.

So what do we do? Since the market hasn’t pulled back much and is not back to new highs, there aren’t a lot of new setups. If you took any positions in the recently mentioned gold stocks then look to trail and scale. Other than that, wait for new setups.

Best of luck with your trading today!

Dave