Don’t Argue With This
By Dave Landry | Daily Commentary , Random Thoughts
Random Thoughts
The Ps didn’t set the world on fire but they did manage to close 1/3% higher. This action keeps them just shy of all-time highs.
The Quack gained over ½%. This action has it within 1 point of multi-year closing highs.
Yet again, the Trannies continued to plow ahead, gaining nearly 1%. This action keeps them at all-time highs.
Defense, Drugs, Manufacturing, Leisure, Media, Retail, and many sub-sectors therein also closed at new highs.
Metals & Mining continue to improve. They are just shy of multi-month highs. The individual issues here are looking even better.
Foreign shares (EFA) are just shy of multi-year highs.
I suppose there’s always something to worry about. Once again, there were a few debacle de jours—e.g. CAM in the Energies, TQNT in the Semis.
Yet again, overall, in spite of some pockets of weakness, things still look pretty good.
I’m not going to argue with a market that’s at or near new highs.
So what do we do? I’m starting to see a few pullbacks setting up in the aforementioned stronger areas. Therefore, start looking to add/add back on the long side. As usual, make sure you wait for entries. As I preach, this, in and of itself, can often keep you out of new trouble. Continue putting together your momentum watch lists (or pay me to do it for you). Once again, as long as the market remains near new highs, I would avoid the short side for now. Regardless of what you do, make sure you honor your stops once triggered
Futures are flat pre-market.
Best of luck with your trading today!
Dave
