A Regular Techno Party

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The notion of a broad market correction seems like an absurd notion at this point, with each shallow dip getting bought and squeezing bears higher. I am starting off this quarter treading lightly, with my portfolio cash level high. As the bull party becomes more fun, and the partygoers at the techno rave throw caution to the wind, I am content to step back and reassess the warehouse. That is not to say that I will go to full cash, nor become totally bearish. Indeed, I could easily start to aggressively buy again at any point. Remember, the power of being an individual trader is that you have the agility to move in and out of the market as you please, unless massive mutual funds who can do that so easily.

I continue to stalk the energy and materials space for longs into the capital inflows. However, the now very extended and complacent nature of many market leaders in the technology and consumer discretionary sectors is concerning. That said, the transportation stocks are coming to life again. The IYT daily chart has done everything it was supposed to do, technically speaking, and I think the railroads are seeing notable inflows today.