All Is Well In The World, So, Should We Just Buy Buy Buy?

Random Thoughts

Let’s catch up: When we last left off, the Ps were at all-time highs but then had a bit of a spill based on world events—at least I think that’s what it was blamed on. I ignore all news. The EFA shares sure did get whacked a bit. Our market tailed off its worst level and held up fairly well in spite of it all. I viewed this move as healthy. Sell offs from overbought help to shake out the weak hands.

Just one day later, the market is off to the races.

The Ps gained over 1 ½%. This action puts them at fresh all-time highs.

The Quack was even stronger, gaining 1 3/4%. This action puts it back to multi-year highs.

The Rusty (IWM) was the strongest of them all, gaining over 2 ½%. This action puts it back to all-time highs. As you would imagine if this broad based index can gain this much, the sector action must be great. And, it was.

Defense, Automotive, Software, Chemicals, Internet, Health Services, and Leisure to name a few are all at new highs.

Retail, which was left for dead just a few weeks ago, is not pushing new highs.

The Transports broke out decisively to new highs.

Banks continue to claw their way back up. Selected Regionals here have made it all the way back to new highs.

Solar (we are long TAN in the “mechanical portfolio” and SPWR in the discretionary one, come to the chart show on Thursday and I’ll show you the porfolio) accelerated to new multi-year highs.

Uranium continues to blast higher. You’re welcome! 🙂

Gold and Silver stocks have been pulling back/consolidating as of late. They look poised to make a new leg higher.

Big Dave, you sound like all is good in world, so should we just buy buy buy? Well, since the methodology requires a pullback, I’m not seeing a lot of new setups other than in the aforementioned Gold & Silver stocks. Therefore, focus on this area and wait for new setups in other areas. Regardless of what you do, wait for entries. This can often keep you out of new trouble. Once triggered, honor your stops just in case. And, if blessed with a winner, take partial profits as offered and trail your stops higher.

Futures are firm pre-market.

Best of luck with your trading today!

Dave