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We have a bit of herky-jerky post-Fed announcement price action taking place, but as I write this I see that we are now making new highs. The power of the prevailing trend has indeed been taking hold since last Tuesday’s sharp sell-off, and now we have a market that is really putting underinvested bulls and outright bears in a very tough spot. When the market is trending, I have little interest in calling a top without some clear signs of buyer exhaustion and/or euphoria. Thus far, I see traders starting to grudgingly accept the trend, However, that is a long ways away from euphoria.
At any rate, the large financials and real estate complexes are attracting inflows of big capital, as evidenced by their respective breakouts today. With plenty of breakout plays working out of multi-week consolidations, I still think many traders are failing to take into account a scenario where we see a major leg higher from here. That might not happen, but the market is sure in no rush to disprove that thesis.
We have been all over this uptrend inside the 12631 Trading Service in 2012, after largely protecting capital in 2011. If you are looking for the best home for traders on the internet, be sure to click on the 12631 hyperlink and check us out inside The PPT.
Go Joe 🙂 (but where is Timber??)
I knew you’d say that 😉