Out of the gate stocks seem to hold within a tight range. Nearing the 10 o’clock hour buyers began to get the upper hand and push the market higher. Led by the NASDAQ the market continued to experience buying pressure ahead of the Yellen speech in New York. Stocks reacted immediately after her speech and continue to run through the end of the session. Volume poured in as traders and investors alike rushed to jump into stocks. A solid day all around it has paid off to stick with this trend. We will continue to execute as we always do and will continue to walk away with gains.
After today’s actions we have a ton of new longs for our subscribers. We fully expect this market to digest today’s gains at some point. Even with the action today we will still continue to employ to our risk management process. There is no need to get fast and loose just because of one day in the market. Far too many times ego gets in the way and mistakes can ruin your portfolio. Do not get careless with your trades.
Last week we saw the number of bulls only inch higher despite the epic rise from February lows. It appears many simply do NOT believe in this market. Even NAAIM shows an under weight of equity exposure. We cannot offer any explanation as to why other than many feel like they know better. Central banks need stock markets higher to support wealth creation. We are just looking at price and adjusting our position sizes accordingly.
Do not over think this market. Keep it simple.
