Once again, the market seemed a little stronger than it appeared on the surface. The Ps and Rusty were flat and the Quack lost nearly ½%.
Internally though, things looked pretty good.
Drugs blasted to all-time highs. Biotech and Delivery are stellar standouts here.
Health Services also blasted to new highs.
The market doesn’t care about Obamacare. In fact, it looks like it likes it. Don’t confuse the issue with facts is what I say. To learn more about this, go to www.dontconfusetheissuewithfacts.com or www.donotconfusetheissuewithfacts.com.
The Transports broke out nicely to new highs—led by the Airs, believe it or not.
For the most part, once again, things felt a market felt a little stronger internally than they seemed on the service.
All wasn’t rosy though.
The Energies appear to be breaking down.
Metals & Mining continued to slide. Gold and Silver were also soft here but do still appear to be in the process of bottoming. “Process” continues to be the key word in that sentence. Any additional weakness would be concerning.
Obviously, with the Quack ½% some technology was soft. The Semis, Internet, Hardware, and Software gave up some of their recent gains. So far though, the uptrends remain intact here.
To sum it up, overall, things still look pretty good. There are a few weaker and sideways areas. Some strong areas corrected a little but overall, again, things still look pretty good.
So what do we do? Since things overall remain constructive, the long side still remains the side to play. Unless you think you have the mother-of-all setups that will sink instead of rising with the tide, avoid the short side. For the most part, it’s always best to err on the side of the major trend. Regardless of what you do, wait for entries. As I preach (after all, I am the lead pastor at www.thechurchoftrendfollowing.com), that in and of itself can often keep you out of trouble. And, once triggered, honor/trail your stops and take partial profits if offered.
Best of luck with your trading today!
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