From the Trading Desk

More New Highs as Stocks Continue their Run

Coming off the long weekend we were welcomed with more new all-time highs. This market has been incredibly strong and many are being left behind. It pays to listen to what matters and employing a strong risk management process. Volume was higher across the board as interest in getting aboard this market’s train continues to be hot. Small cap stocks led the market higher for major market averages. Utilities had a solid day up more than 1%. XLU lacks the volume, but today the ETF pushed away from its 200-day moving average. All around today was a solid session and we continue to see strength despite what many may think this market should do. We simply follow the price action and ignore the noise.

There is just no quit in this market. None whatsoever! It is truly amazing the amount of strength we see in the market. We do know this won’t last forever and we will certainly see some sort of consolidation in the coming days. Whether it is nefarious or not we should see some sort of correction. This is precisely why we have our stops and proper position sizing. If the market does go against us we are protected from any large losses. We can recover from many paper cuts, but large wounds make it difficult to recover. It all boils down to something we repeat and often. Ride your winners. Cut your losers.

AMZN hit an all-time high even after the stock took a hit after its most recent earnings report. AAPL notched another all-time high too. Where we go from here is anyone’s best guess, but this has been one tremendous ride thus far. Many were too late to the party and now are going to get in too late and be exposed. Never chase stocks higher.

At some point, we will get some sort of correction. There is no sense in trying to predict when or how deep it will go. We will take it one day at a time. A great start to the week, let’s see if we can follow up today’s gains with solid action. Best of luck!

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