The
market continues to act well. Although
we technically closed down for the week, we aren’t seeing any medium or longer
term warning signs. A small pullback is
certainly expected (and welcomed) after such a strong runup over the past
month.
Yesterday
we had a strong decline on increased volume which does create a small amount of
concern. With that said, all our indicators
still signal more upside from here. I
think yesterday was just a byproduct of the Iraq situation, which certainly
could continue to create fear in the market but today’s action really showed
that the fear was short lived and not indicating a longer term trend.
We also
certainly could point to the low volume of this entire upside move over the
past month, and get nervous over this lack of buying volume. Although this does
create some concern, our shorter term indicators are very bullish regardless.
Bullishness
sentiment is again at an all time high, which can indicate we are nearing a top
again, but as I have mentioned in the past … sentiment indicators are secondary
in nature and as a result not incredibly reliable.
Leading
stocks are once again … leading, with the Nasdaq and Russell 2000 outperforming
since the bottom of the last correction was formed in mid April.
For now, we stay fully invested
with little cause for concern.
On a personal note, if you
haven’t had a chance to check out my book, please check out the “look inside”
feature at Amazon here … http://www.amazon.com/gp/product/1499245823/ref=as_li_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=1499245823&linkCode=as2&tag=randmaur-20&linkId=NFV5VUZYKSLNVXMS
Hope you have a wonderful and
safe weekend.
Respectfully,
Randall Mauro
Resnn Investments, LLC
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