As I said yesterday: When it’s the only game in town, you can’t keep a good market down. I really hate that “where else are you going to go?” argument but it looks like that’s the type of market that we are in. I suppose as a trend follower, I shouldn’t get too caught up in trying to justify the “why.” Either it is going up, down, or sideways. And, lately, the arrow has been pointing higher. I’m certainly not going to fight it.
And, so far, you can’t keep a good market down.
The Ps (S&P 500) gained .38% which is just barely enough to put them back to closing at all-time highs. All-time highs is all-time highs. You can’t argue with that.
The Quack (Nasdaq) gained a like amount but didn’t quite make it back to new highs. Nevertheless, it is now just shy of 14-year highs.
The Rusty (IWM) continued to come back with a vengeance, gaining nearly 1 ¼%. So far, so good here-it dropped like a stone to the bottom of its trading range but bounced right off of it.
Most of tech remains strong. This isn’t a big shocker since the tech filled Quack remains near new highs. The Semis were the big standout here on Wednesday. They accelerated to new highs, gaining nearly 2%.
The other sectors mentioned yesterday: Defense, Computer Hardware, Computer Software, Durables, Non-Durables, Drugs, Foods, Health Services, Insurance, Leisure, Real Estate, and Retail remain in uptrends and at or near new highs.
So far, the market remains healthy. Don’t question it. If you do, you’ll likely find some logical reason as to why it should not be rallying. What is, IS. Is the market going up? Yes? Then I should be buying. Is the market going down? Yes? Then I should be selling. Is the market going sideways? Yes? Then I should be sitting on my hands. Like the Hokey Pokey, that’s what being a Trend Following Moron is all about.
So what do we do? Well, again, what is, is. The market is going up. Yes, do pay attention to clues as to the otherwise but don’t fight it for now. As usual, just make sure you wait for entries and honor your stops just in case. This way, the market makes some decisions for you.
Best of luck with your trading today!
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