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We have a three-day weekend coming up, with the market closed on Monday for Presidents’ Day. Moreover, today is options expiration, so you can expect some jumpy action as we work through the session. The bears thought they were going roll this market over via a vicious Valentine’s Day massacre, but the bulls are proving to be much more resilient than most traders had anticipated. I closed a big-time winning trade in FSYS this morning in 12631, as the firm reports earnings next week. The amount of charts that keep consolidating mildly is encouraging, and as long as those breakouts keep coming I am looking to play.
I do not believe this market is very overbought, yet I still see plenty of traders who doubt this rally and are either hedges or outright bearish. In addition, I do not see frighteningly overbought conditions. When you add that up, I would not be surprised to see things get frothier before we get the highly-anticpated correction in price.
Chess, how are you viewing DHI at the moment? Is it a failed breakout? Keep doing God’s work!
Looking a little heavy, taking too much time. Maybe not breaking down but a good reason to wait for some confirmation before buying a breakout.