A short consolidation period for the Russell continues to be delayed as buyers continue to pile on push the win streak to 13 days. Today while the win streak is on the S&P 500, Dow, NASDAQ, Russell 2000, and Midcap 400 all closed at all-time highs. Volume was higher across the exchanges as we continue to see investors pile into stocks. Telecom stocks were the big winners today while healthcare were the biggest losers on the session. While we would love for small caps to pull in and consolidate we clearly have a situation where panic buying is taking place. Do not fight this trend.
Believe it or not we have quite a few new longs for tomorrow’s market. While it is not our most ever we do have quite a bit even though the Russell 2000 is up 13 straight days. Let’s not forget closing at all-time highs is not a bearish indicator. Most will want to sell and top tick the market, but is a fools’ game. What we know right now is this action here is quite bullish. Hitting new highs is exactly what you want to see from an uptrend. Stick with the trend.
At some point, we will get a short consolidation period and this is where strong patterns will emerge. Aside from our end-of-day signals we will have our intraday opportunities. We have been on top of this rally from the get go. While others were trying to figure out why we were moving we were busy getting long this market.
No need to over analyze this market. We are in an uptrend and what we see will likely continue.
