We aren’t surprised to see this market closing higher and the NASDAQ hitting a new high today. Volume wasn’t higher on the session as once again new highs are hit without volume. Leading stocks continue to act real well and have been treating us quite well. Tomorrow’s end of the month trading should be interesting given how the month started. There are plenty of stocks out there if you are simply looking for the right stocks. We aren’t bullish or bearish we are simply on a trend and will remain with the trend until we have evidence supporting otherwise. Sticking with our process has proven once again to be fruitful as we the NASDAQ and S&P 500 are closing the month of February at 52 week highs.
It is that time of the week to check in with sentiment indicators. The II survey continues to be dominated by bulls. Bears remain below 20% at 17.3%. AAII had an interesting development with both bears and bulls moving lower. Neutrality is now on par with bulls as respondents to the AAII survey are simply sitting on their hands. NAAIM exposure index came in above 90%. AAII survey certainly does not line up with the II and NAAIM surveys. Given our run it is not surprising to see bulls continuing to win out on sentiment.
The month of February started off on very shaky ground. Many were calling (and still calling) a market top due to how the month started. However, it was not long buyers catapulted the S&P 500 and NASDAQ to new 52 week highs. At some point we’ll see a market correction, but as the market has proven predicting when one will come is very difficult to predict. Stay with the trend.
