After stalling out on Tuesday the market has been able to claw its way back and nearly recapture the high set this week. Volume was lower on the session despite some strong action in some names. Sellers continue to take this summer off as we remain near all-time highs on an intraday basis. Crude oil reversed yesterday’s selling as the bounce off the most recent lows still is alive. It would not be a surprise to see the commodity push higher. Not a bad session at all and we will continue to work this uptrend. Our stops are in place and we’ll follow this trend as long as we can.
We did have a few stops hit intraday which is a little bit of a red flag. It is normal to rotate into new names and should be expected. However, today we had a little more than normal go off. This does not mean we are going to fall off a cliff. We may see this uptrend get a little more volatile than what we have seen recently. If we do see more and more sells with big distribution days would change our stance. Let’s wait and see rather than guess what this market will do next.
Sentiment continues to be the same ole story. Bulls on the AAII survey ended the week at 31% as no one who subscribes to this service believes in this market. Bears ended the week at 27% and given where we are in this market it is a surprise Neutral respondents are the majority. We are at all-time highs and people are indifferent. Tells you quite a bit. No need to be hero or think you know where the market should or should not be. As long as you focus on what matters you are able to ignore the noise. We are in an uptrend with plenty of stocks moving higher. Keep it simple.
Go out and have a great weekend. Not too many summer days left. Make sure you enjoy your time away from the market.
