It Can Be Done Grasshopper

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Random Thoughts

With the indices relatively unchanged, I hate to read too much into things.

The Quack ended off its best levels but did end in the black. This was enough to keep it at multi-year highs.

The Ps tried to rally but ended down .13%. This action has them .13% away from all-time highs.

What the Ps lost, the Rusty gained. And, this is enough to keep it at all-time highs.

Again, I don’t want to read too much into a flat day. As you would imagine, most stocks were mixed.

There were a few standouts though:

Biotech, which recently looked pretty sick just recently, closed at all-time highs. Drugs overall and Health Services, in spite of all the news, also closed at all-time highs. See my recent column about not confusing the issue with facts.

Selected Regional Banks accelerated to all-time highs.

The Transports also closed at all-time highs.

Not all was rosy though. Metals & Mining continue to roll over. And, Real Estate still looks anemic.

With a flat day, not much changes. I’m still not seeing a lot of new meaningful longs just yet. This is perfectly normal for a methodology that requires a pullback. I am seeing a few shorts but not enough to cause alarm. Focus mostly on managing your existing positions. Take partial profits as offered and trail your stops higher. Continue to avoid getting too bearish as long as the market remains at or near new highs. If you really really like a short side setup, then take it-we actually have one that we are going after today. Again though, just don’t get too aggressive as long as the market is at new highs. In an ideal world, the market continues higher and we avoid a new position altogether. Then, we look to add on the long side. And, if it does trigger and the market goes straight up, we’ll get stopped. This won’t be the first losing trade and it certainly won’t be the last. Nothing ventured, nothing gained. Learning how to shrug your shoulders and shout next!-focusing on the next potential trade–takes a while. This may be hard to believe if you are just starting out but it can be done Grasshopper.

Futures are flat pre-market.

Best of luck with your trading today!

Dave