Yesterday, I said “show me” and the market did. The Ps rallied nicely to close at all-time highs-tacking on over 1%. Ditto for the Rusty. The Quack also had a good day. It put in a solid rally and closed at multi-year highs.
Wednesday’s action was questionable but Thursday’s action look great. This is why I don’t get too excited about one-day contra-trend patterns like the candle people. Yes, it might be an ominous “Baby In A Poopy Diaper” pattern but this doesn’t mean that the market has topped.
Take things one day at a time. Is the market at or near new highs? Yes? Then it might be trending.
I suppose the $64,000 question is: Is this the all clear? Well, you never know for sure in this business. If you want a guarantee, buy a toaster. Disclaimers aside, don’t argue with new highs. Focus on the long side but use stops just in case.
As far as opportunities, I still like selected Metals & Mining stocks such as Gold, Silver, Uranium, and Rare Earths. Be selective though. Many of these stocks have overhead supply. Further, the underlying commodities haven’t turned just yet. So, you might end up being right but early-something I’m often famous for. Once again, the great thing here is that they can trade contra to the overall market should the market not follow through.
Futures are flat pre-market.
Best of luck with your trading today!
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