The stock market continued its bullish posture, on Friday, with all the indexes finishing higher on an increase in volume. This follow-through from yesterdays bullish day was very positive, especially with the Nasdaq gapping higher at the morning. Holding that gap up was very bullish. Along with the higher volume was pretty good breadth across the board. The Semiconductor Index rallied 2.5% thanks to MRVL which only adds to the momentum we are seeing in tech stocks. That recent strength along with the SP500 joining the Nasdaq in hitting 4 1/2 year highs is a beautiful thing to behold if you are long this market.
The stock market continues to ignore all fears that the news media and bears can throw at it. Any dip is bought and the fact the bears can't get much going to the downside shows you how hard it is to stop momentum once it gets going. This makes it hard for the bears who turn bullish to hop on. They are late and already see big gains in the indexes and stocks they watch and are too afraid to "buy at the top." So instead they do nothing, sit back, and bad mouth the market so they can get a piece of it. So now what do they do (or I heard them start doing today)? They start calling for a top. "The market is up too much, It is way too overbought," is usually what it sounds like. But no matter how loud they say it or how often they say it, you should ignore it. Their "top calling" is good news. That is what we need to keep this market moving to the upside. A heavy level of disbelief.
Granted, the markets have gone up a lot without a rest. But that is normal in really strong bull markets that have the sectors participating in it as we do now. No one said the markets were rational. That is why we go so far up without resting and we, subsequently in the future, always crash. The markets are basically a market of supply and demand. And that supply and demand is dictated by humans who are, by nature, way too overly emotional creatures. So when are money is on the line, most people see either greed or fear and act in accordance. And like a herd of rich preppy teenagers, when somebody is doing something new and cool everyone has to do it. And right now that new and cool thing is buying stocks again.
So if I write all this bullish talk what does worry me then? Not too much. The biggest thing I am worried about right now is the amount of bullishness I hear on CNBC from portfolio managers. But since the average Joe Sixpack that doesn't actively invest in the market thinks we are still in a recession and doesnt realize that the Nasdaq is up almost 100% since the 2002 bottom, I feel confident the bulls will continue to have the upper advantage.
I mean, come on, I dont care how much you hate GWB, the deficit, or the war. That doesn't make you money now to have later on to use the way you want to use it. If it is contribute to a Communist party, pay off your credit card bill, or donate to a world peace cause, you will not be able to do it because instead of taking action and profiting from the trend of the market you sat behind and complained about a wonderful rally happening when the guy you hate is in office. I didn't like Clinton, yet the stock market the Republican congress helped ignite, was good enough for me to profit off of. Oh yeah, and to say that Clinton or Reagan was responsible for the rally in the 1990's is just ignorant. Technology and its leep-and-bounds advances was causing that rally to happen NO MATTER WHAT. The advances that are made in technology, by default, will always allow the market to rally over time. That is why you can go back during any year and 20 years later make money in the stock market, no matter what year you start.
Didn't MSFT just leak a memo about Web 2.0? Has anyone heard of Nanotechnology, Artificial Intelligence, or Broadband? Ah the future looks bright my friends. Until this market turns lower, only a very angry and sad bear can hate this market. I am agnostic on it. But while it moves up I will have my bull cake and eat it to.
Look forward to the comments!!
New Swing Longs: RWC CLZR WLT CEY GGR CHINA CHRD KPA CALP BRCM RADS(if Cramer daytraders don't gap it up too much)
Longs Outperforming Market: NDAQ-267% BMD-244% GMXR-91% RES-66% WIRE-62% SUPX-62% SPNC-60% MSCC-59% ACR-55% SMTS-41% ANAD-39% HITK-37% IRIS-29% CMED-29% LMIA-28% CRDN-27% BNT-25% FAST-25% PTIX HOM OXM NSC VIGN MRGE ICTG TESOF NNDS VAS ASEI MNST STJ SXC CIB ASPM GOL KEX ANST WOOF PAYX IIJI TFSM TOMO STEL MU SVA MNG TNOX RNOW NXG SIGI
New Swing Shorts: SNS
Shorts Outperforming Market: SYMC
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