A sluggish start would give way to buyers stepping up accumulating shares of those on the NASDAQ. It was the Russell 2000 who would lead the market higher today as investors continue to pour money into the Russell and NASDAQ. Volume on the NASDAQ rose, but fell on the NYSE as investors are concentrating on the Russell and NASDAQ. Economic news was mostly in line with the exception of the Markit PMI coming in better than expected and Philly Fed disappointing. Tomorrow’s option expiry will likely induce some volatility and unusual volume. Do not let it the intraday noise sway you from your plan. This market continues to create havoc to those who are picking tops. We’ll stick with our current uptrend for now.
Bears continue to be a very thin group. AAII bears dropped back into the low twenties registering at 22.8% for the week. Bulls jumped to 42% while those who were neutral came in at 35%. NAAIM managers were bullish, but not as bullish over the last few months of 2013. II bears continue to remain below 20% as the number of those who are Bulls fluctuate between 45-60%. Currently the number of Bulls from the II survey stands at 47%; a far cry from its highs seen at the end of 2013. Sentiment continues to fall on the side of the bulls as it appears Bears are becoming a thin population. Given the run in this market it really isn’t surprising.
It has been quite the week and this market continues to act strong. Focus on the leaders and what is performing well. This focus will produce far better results. Stay on top of your winners and shed your losers. Have a great weekend. Get out and enjoy life.
