QQQs Slide Into the weekend, but Near All-time Highs
A great week of gains for the market overall as we indicated last week this bull market has legs. While this thing can turn at any moment the week was a positive one for the market. Many will continue to doubt this market, but we cannot allow our opinions of the market get in the way of our trading. We know this market is hooked on stimulus and without we’d be in a much different place. Perhaps in the future the day of reckoning may happen, but it is something we cannot predict when. Therefore, it is in our best interested to keep moving forward and following the price action of this market. Earnings will continue to trickle in, but for the most part the bulk of releases have passed. We have a new week and a week with new opportunities to seize.
Since the rally began in April, we have seen an unprecedented run. Many were not expecting this market to recover the losses from SARS-COV-2, but for the most part we have surpassed where we were in February before the virus hit. GLD and SLV have also had quite the run over the last two months. Bitcoin too has pushed higher as fears over inflation due to the influx of liquidity from the Federal Reserve Bank. We must stick to what we can control rather than focusing what is out of our control.
The NAAIM Exposure index still shows active managers with long exposure to this market. The index finished last week at 94.55. A high number, but down nearly 3 points from the previous week. Not a surprise given where the market sits. On the flip side the crowd continues to doubt this market. AAII Bulls did move higher but remained it the 20s finishing the week at 23.29%. Bears slid a bit to 47.6%. Will retail be right about this market? They have missed out on quite the rally since April. At some point, will they flip or will the stock market flip? Who will be right? In the end, it really does not matter who is right. What matters is being on the right side long enough to make gains and keep them. Who cares if your opinion is right or wrong? Your account just wants you to be the on the proper side of the market to grow.
We hope you had a great weekend and a great week ahead.
