The indicies closed at session highs today. Not a big deal in the sense that the market is stuck in a range these last couple weeks, but important to use as a guide when reviewing your current holdings, or new positions you are considering.
For the last few weeks, we’ve hit a rotational spot in the market. Rotational meaning this becomes a great location to take profits on the stuff that led you these prices and use that capital to start positioning elsewhere. Take FB and BIDU as an example. These are stocks that have wanted no part of the market rally this year, yet are seeing fresh money put to work at some pretty rich prices.
Over the last couple weeks and moving forward, it looks like we’re going to continue to see this happen, until we’re ready for the next leg up. Take note of your stocks that are weaker than the market, while it grinds in a range. It will be the stuff that gets hammered when prices are ready to pull back. Also look at what is pushing the market up day to day:
Solar, Biotech, Retail, Materials, Energy, Regional Banks, etc.
The market looks like it might want to cash in some of its bigger winners, and allocate into stocks making initiative moves here. The attitude of individual stocks during the next couple weeks will reflect who will be stepping up to leadership roles, pushing the market to another high.
OA
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