The Market Continues To Improve: Follow The Trend
By Dave Landry | Random Thoughts
Random Thoughts
The market continues to improve.
The Ps closed at all-time highs—albeit barely but all-time highs nonetheless.
The Quack (Nasdaq) closed at its highest levels since 2000—not too shabby.
The Rusty (IWM) continues to bring up the rear. It remains shy of its all-time highs but only by a percent or so. One big up day would fix this.
The sector action continues to shape up.
As one would expect, many areas are at or near new highs like the market itself. These include but not limited to Conglomerates, Manufacturing, Foods, Tobacco, Semis, Health Services, and Utilities.
Some areas that sold off earlier this year are coming back nicely.
Drugs have broken out to multi-month highs and they are closing in on all-time highs.
Gold and Silver stocks took a breather but so far, they appear to have put in a bottom and they look poised to make a new leg higher.
So what do we do? Even though the market hasn’t had much of a correction just yet, I’m beginning to see some setups in more speculative issues such as IPOs and China stocks. These issues can often move independently of the overall market. Ditto for Gold & Silver. Therefore, for now, focus on these type of issues. Hopefully, and I hate to use the word hope in this business, the overall market will accelerate higher, have an orderly correction, and then rinse & repeat.
Best of luck with your trading today!
Dave