Stock rise again as traders feel the joy of hints at better than expected retail sales. Holiday volume took over once again, but it is not unexpected as many traders are taking vacation. The uptrend continues and it continues to be strong.
We are going to be wise and take profits where our stocks signal. Unlike many Wall Street pundits we don’t know if the uptrend will end tomorrow or even in January. At this point in time, it appears this market has legs to run further. Much like the end of 2003 and the beginning of 2004 the market is looking to break higher into new 52 week high area. The charts will dictate our moves for now and right now we continue to see higher prices.
A sharp reversal here wouldn’t be a surprise here and we would expect to see buyers step up. However, any stalling here would have us be defensive as the action would be signalling a possible top. Tops take awhile to show themselves, but they can be spotted with distribution and stalling. Until such time, we sit back and continue to take our signals from the market.
Be well.
