Regardless of whether the S&P 500 pushes towards all-time highs in a few days, or instead if we correct and it takes several weeks or months, as far as individual stock selection there is no doubt in mind we are at the stage in the March 2009-present cyclical bull market where you must look at the weekly charts. Specifically, strong stocks which have appreciated considerably and continue to look great on their daily timeframes might be luring you in for a nasty bull trap, otherwise known as a “late-stage base breakdown.”
As an example, consider Rackspace. On the weekly chart below, I would argue the stock had covered so much ground since 2009 that the market was looking for any excuse to sell-off. Granted, earnings were disappointing. But over the years we have seen plenty of stocks rally sharply on poor earnings, which raises the issue of whether the market was just looking for an excuse to do that which it eventually was going to do anyway.
Either way, be sure to cross-check any enticing daily charts you see here with the weekly timeframes, especially at this stage in the bull.
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the dogshit stocks are going down too