Market is in a very interesting mode.....
Everyone agrees that market should pull back...
Bulls @ 54% ...high for technicians comfort..
BUT...this TAPE may defy everyone for a while yet, IF everyone says that we are overbought & we keep going UP on bad news & good news.....then there can be only one interpretation...we are NOT done going UP.
Pullbacks has been for 1 day only every so often then it flies UP....
TAPE is telling us that we should stay engaged with this market UNTIL we start going down for more than a day.....
I am not even sure that IF we are down two days in a row that it will not go up for another two days & recoup everything & then some..as has been the case lately.
The only cautionary approach could be...is to book profit ...to be on the safe side.
Before highest target for S&P 500 was 1750.....now it is 2000.......sometimes oversize round numbers can be a sign of near term TOP........
Rotation is in full swing except in Gold,Silver, iron ore, copper.....who knows it may join the party also.
We may get into a full blown blowoff mode very soon & that too may last for a while as bonds / money market allocation & other money into sidelines may allocate into equities.
All in all there is more positive still than one negative of overbought & desire for pullback by so many.
Stay the course & enjoy this uptrend...it ain't over till its over.....
BLOG does NOT give buy or sell.
Saleem
7 comments:
Hey Saleem,
Great analysis--I feel very similar in outlook. We are seeing those one-day profit-taking pullbacks, but there's nothing fundamental in companies' earnings outlooks to sustain any decline. The outlook for the US, the world, companies and consumers all point to improvements in activity and confidence for the second half and beyond. Barring a geopolitical event, there's almost no reason to sell. This is scary to say outloud, but I think there's many current and potential investors that have yet to realize this, hence our bull market can continue.
Stocktrader
Hi Stocktrader,
Thanks for your feedback.
We are watching "history in the making"
We are @ very early inning of this run...conversion of Bonds into equity has not happened yet......
1995 or 1999..i will take either in 2013.
Saleem
Hey Saleem,
Bought SODA @ 64.949. The earnings last quarter showed good momentum and this is a way to increase my consumer discretionary allocation. The short interest in the stock could provide for a nice move into the summer.
Also, incredible followthough action on DATA and MKTO. Those have helped the portfolio a lot in the last two days.
Stocktrader
Hey Saleem,
Bought MODN @ 18.654 to add to my enterprise software allocation. When I listened to the story, I felt good momentum was ahead and I am buying back at lower than when I sold prior. I think people are overlooking the TAM (total addressable market) for revenue management software.
Stocktrader
Hi Stocktrader,
Just got up & saw your note re purchase of SODA & MODN......
MKTO UP almost 7% & DATA UP almost 17%.....is giving you $ & boost to your portfolio on a flattish open.
Good luck with your supercharged portfolio$$$$
Saleem
Hey Saleem,
I was going to buy some RALY today too, but it ran away from me while I was buying the others.
Stocktrader
Hi Stocktrader,
You should try your "reasonable price offer on RALY" who knows you may get it like MKTO....
Good luck!
Saleem
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