The Ps Are At All-Time Highs, Should We Celebrate?

Random Thoughts

The Ps (S&P 500) closed at all-time highs. I’m sure the media had a big celebration. Me? Well, they only ended up .18% and they are just peeping up above their sideways range. The market will have to—wait for it—follow through before I’ll start to get excited. Don’t get me wrong, as trend guy I like new highs, I just need follow through. I have backed off on initiating new shorts.

The Quack (Nasdaq) had a decent day, gaining .40%. This action has it just shy of decade plus highs. So far so good, again, I’d just like to see follow through.

The Rusty (IWM) only ended up a smidge. So far, it still looks poised to resume its slide out of a Bowtie down from all time-highs. The last 2 signals didn’t work (big) here so it’s due. Let’s hope that the 3rd time isn’t a charm. Hopefully, and I hate to use the hope word when it comes to the markets, it’ll rally to negate the signal. See this Youtube if you’re not familiar with my Bowtie strategy.

Things are mixed and erratic internally.

The Semis, which have been doing okay (or at least sideways), sold off hard, losing nearly 2%

Biotech, which has been looking questionable, jumped over 5%.

Ditto for Drugs overall with nearly a 2% gain.

Metals & Mining managed to eke out a small gain, enough to keep them at multi-year highs. Aluminum continues to melt up here.

Unfortunately, Gold & Silver lagged. I still think a bottom remains in place here. Honor your stops just in case.

Energies made new highs. This action has them coming out of their short-term sideways range.

Many other areas are mixed to sideways at best. These include but are not limited to Leisure, Banks, Retail, Foods, and Tobacco.

So what do we do? Don’t get me wrong, I’m glad the Ps and Quack are shaping up, I’d just like to see some follow through. The Rusty remains the rub. It still looks questionable at best. There’s more to it than that though. In digging through thousands of charts nightly I’m still not seeing much to get excited about. The database continues to suggest that we wait on new setups. And, based on Wednesday’s erratic action, I’m glad that we are.

Best of luck with your trading today!

Dave

P.S. Chart show today! Be there or be square (unless of course you’re busy saving lives, building buildings, training dogs, repairing automatic transmissions, or doing other great things),