The indexes were all up over 1% today, with the sp600 leading with a 2.12% gain, with a huge increase in volume. The big surge in volume is the confirmation the uptrend is valid. There is now no doubt that the rally we have been seeing is for real. The huge pickup in volume is the institutions putting more money to work on the long side, shorts covering positions, and institutions initiating new long positions. The old maxim "sell in May and go away" is probably going to be a contrarian this year. The follow thru in the Nasdaq on May 4 is now solidly proven with today's huge advance on stronger volume that was over the 50 day volume average.
In the chat rooms I monitor, I am getting selectively attacked by trapped bears. They continue to be bearish and think a top is now forming, even though a lot of sentiment indicators are at the same level they were in March 2003. This tells me this rally will have legs.
But I dont need chatters to tell me what the market is going to do that is why charts exist. And I am loaded to the gills with longs in medical, tech, and retail that are acting well and continue to offer me new buys.
HISTORY REPEATS ITSELF. Dont fight the trend!!!!!!!!!!!!!!!!!!!!!!!!!!!!! We are in an uptrend and that is the right side of the market to be on, no matter how much you want a crash.
I will be back later with long picks. But if you just take the time to read my past 5 days of post you will find plenty of options to invest/trade there.
I want to thank everyone who reads this blog. I really appreciate your feedback even when it is negative.
Mahalo and Aloha
will be back later with stocks....
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