A solid session all around with leading stocks showing power despite the Dow and S&P 500 closing lower on the session. The NASDAQ is nearing the 5000 level a mark it has not seen in over a decade. Volume was higher across the board in a good show of support for the NASDAQ. There were plenty of earnings winners including CRM, AKRX, and AVGO providing the market with juice. AAPL regained its winning ways as volume poured into the stock. Jobless claims jumped more than expected, but the market simply does not care. Our uptrend continues to push higher and we continue to reap its rewards.
Now we have been in this uptrend for more than a month we will begin to get a lot of people calling for a top. We lack the distribution and breakdown in leadership to begin to think this uptrend is about to end. This market can stay in overbought territory much longer than many can stay solvent on the short side of the market. Today we saw a good amount of leaders push higher in excellent volume and there is no way that can be a bearish sign.
Sentiment still remains slanted towards the bull camp and given the rise in the market it does not come as a surprise. AAII bulls ended the week at 45% while bears jumped to 20%. NAAIM exposure index moved to 99%. Do not let this fool you as the exposure index has been over 100% and the market has continued to run. II Bulls are a shade below 60% still below its 5 year high. II Bears ended the week at 14.1% a shade above its 5 year low. We still have not seen an extreme with all sentiment readings, but they do remain heavily skewed in the bull camp. Perhaps at some point sentiment readings will line up together, but for now we remain just below their extreme readings.
We continue to keep things pretty simple and work our signals. There is no need to push the limits and outsmart ourselves. We trust in our system and it has been providing some nice gains. As we head into the weekend we will continue ride our winners and cut our losers. Have a great weekend.
