Turnaround Tuesday lives up to its name as the Dow leads the Market higher

Void of economic releases the market did get showered with more than $3 billion in asset purchases from the Federal Reserve. A hiccup in the morning was quickly support as the Federal Reserve Open Market Operations flooded the market with fresh new cash. Over Europe the DAX closed in the green for the 11th straight day. The index has been up 18 out of 20 days since the April lows. We have witnessed an impressive run for the DAX and on the heels of the Nikkei continuing to push higher into the stock market stratosphere. Non-stop QE and ZIRP have juiced gains, but who are we to judge other than to ride the wave higher. We’ll get a few economic reports out tomorrow, but the market will certainly react to Bernanke and the release of the minutes from the last FOMC meeting. The trend is your friend. There really isn’t much to opine regarding this market. Other than the non-stop upward mobility prices have found themselves in. Sure we can dive into why stocks are trading at a premium to EBITDA, but would that make a difference? At some point we’ll see a correction of some order of magnitude. However, no one knows where or when it will come. For those like Peter Schiff who were in 2006 claiming we were going to collapse completely missed the upside from 06-07 even a good rally in the spring of 2008. If you follow a sound process following price and ignore the noise you’ll be able to capture any market trend in the future. from ZeroHedge It is interesting to see the amount of stocks in the market that are above their moving averages. It has been a while since we have covered this metric, but given the lofty levels we are experiencing I say why not. Nearly 80% of all stocks being traded in the United States (according to Barchart) are trading above their respective 150 and 200 day moving average. 76% of stocks are trading above there 20, 50, and 100 day moving averages. These are certainly “lofty” levels, but we have seen these levels before. Any outcome is possible and having a sound repeatable process is what will set you apart from the pack in terms of solid gains.