Once again the S&P 500 is at all-time highs as money continues to flow to US stocks as stability is sought amid global uncertainty. The Nikkei kicked off the day with nearly 4% in gains. Small cap stocks led the market higher with gains greater than 1%. Volume lagged Friday’s turnover, but Monday’s typically see light volume. Many continue to doubt this market and they continue to lag everyone! New highs are contagious and we should continue to see this market ride the new HGH train.

This is certainly not a normal market by any stretch given the unprecedented actions of Central Banks. We shouldn’t simply write-off this market and miss out on gains. Sure, this central bank experience can come to a nasty end. However, we will stay prudent with risk adjusted position sizes and cutting our losses there really isn’t anything we should be worried about. Stick with this trend and reap the gains.

If you have solid gains in your names it is best to sell on the way up. Gains do evaporate quickly and in this market they can erode quickly. We are a bit overbought and stocks with big gains should be paired back.

What a nice way to start the week. Let’s keep this new high train rolling! Have a great week!