Random Thoughts-Market Update
To The Markets
As I've been saying, the best thing that could happen for this market would be for it to drop below its sideways range and then snap right back above it. That would shake out some nervous longs and attract some eager shorts. Similar in the spirit of the Trend Knockout (TKO), this can often clear the way for the market to trade higher. Mission accomplished! Well, at least in the Quack (Nasdaq). It's now back to all-time highs. The Ps (S&P 500) aren't too far behind but obviously, you still have to get there.
The Rusty (IWM) has also been improving as of late. It's tagging multi-year highs but still has some trading to overcome to get back to all-time highs.
The sector action is mixed but improving.
As you would expect with the Nasdaq at new highs, a lot of technology is following suit.
Interest rate sensitive areas have been bouncing back as of late but I wouldn't rush out and buy them. They still look like they could still be in trouble longer-term.
Metals & Mining which looked a little "toppy" recently is now coming back with a vengeance. As I preach, sometimes they can have 9-lives. Do wait to see if they can make it all the way back to marginal new highs before looking to put on new positions here.
So What Do We Do?
With the recent sideways trading, I'm not seeing a lot of setups. The good news is that if the market continues to follow through, we will. Therefore, continue to get ready to get ready. Keep adding stocks in accelerated uptrends to your momentum list. Also, continue to watch IPOs. I know the bull market here will end
May the trend be with you!
*This market update was originally associated with this column.