The last half-hour of trading revealed how bullish today’s session was as stocks close out at session highs. Things didn’t get moving until after 12:00 New York time as buyers bid up stocks led by the NASDAQ Composite index. Preliminary volume figures show volume rose across the board a sign institutions were willing to gobble up shares of stock. At this point the market is still waiting for the NASDAQ to close at record highs while the Dow Jones Industrial Average and S&P 500 continue to enjoy all-time highs. The positive action we have been seeing the past two days from leading stocks foreshadowed today’s move. It is typical market behavior for leading stocks to burst out prior to the general market and this market was no exception.
Today’s move in price was certainly bullish for the market in general. The moves we were seeing in our leading stocks certainly hinted at the broader market moving higher and today we received price confirmation. It is important to always keep an eye on how leading stocks behave and since you should have a portfolio of leading stocks your portfolio will be a barometer. It also helps to trade what you see and not what you think. More often than not traders will ignore what they see and trade on what they think. Unfortunately, it turns their portfolio sour. Discipline is paramount when you are a trend follower.
Since we continue to see articles about a stock market crash or how we are in a bubble today’s release of II sentiment was quite interesting. II Bears hit its lowest level since 1989 at 15.5%. Last week we saw bears coming in at 15.6%. We can sound smart and ring the bell on a market top, but it appears everyone else who looks at sentiment figures is doing the same. Over the weekend it appeared as if you didn’t write a story about the market crashing you were shunned. Perhaps, the lack of bears will finally push folks to chase stocks higher ending in a parabolic moves. Anything is possible and given the action we have right now going parabolic is certainly a possibility.
Stick with the game and get with Big Wave Trading before you miss out on any big moves in the market. We are on top of our game and want to help you!
