Wait For Your Pitch

Random Thoughts

The Ps (S&P 500) continued higher but with less vigor. Nevertheless, this action has them closing at all-time highs.

The Quack (Nasdaq) tacked on 1/3%. This action keeps it at multi-month highs and ½% away from multi-year highs.

The Rusty (IWM) continues to plow ahead with a vengeance. It tacked on well over ¾%. It still has a few percent to get to all-time highs but so far, so good. Again, one has to wonder how long it can sustain this but I certainly wouldn’t get it its way.

There’s not much new to report in the sectors. Most made new marginal and not so marginal new highs like the indices. Those that pulled back didn’t do so by much. For the most part, most ended higher.

The market continues to string together some good days. And, that’s what an uptrend is all about.

I’d feel much better if the Quack and Rusty would bang out multi-year and all-time highs respectively. My concern here is that they are becoming overbought quickly and could run out of steam before they make new highs.

As usual though, take things day by day and setup by setup.

Speaking of setups, over than a few recent IPOs, the database hasn’t produced many lately. This is perfectly normal for a methodology that requires a pullback. In an ideal world, the indices would go even further and then have an orderly correction. After that, we’d likely see a plethora of setups.

So what do we do? Again, obviously, conditions continue to improve. Since we are looking to play pullbacks, there likely won’t be much to do until the market begins to pull back. Therefore, continue to wait for setups before taking any new action. In the meantime, honor your stops on any left over shorts and take partial profits as offered on existing longs. Yet again, let the market come to you. Don’t chase it. Wait for your pitch. If this is the mother-of-all new bull legs, there will be plenty time to get aboard.

Best of luck with your trading today!

Futures are soft pre-market.

Dave