Bullishness remains for the stock market, but little headway made
We continue to see this market work itself sideways post-election cycle. Earnings still are hitting the newswires, but overall, the market is still in a solid position to push higher. On the negative side there is far too much bullishness to really see an extended rally. Anything is possible and keeping an open mind is an absolute must. There are plenty of opportunities in the stock market if you are willing to put the time and effort in along with a robust risk management process. No matter what your timeframe, there is opportunity if you remain disciplined in your approach to trading. Many lack the discipline and ability to grind to be successful. Put in the time and remain steadfast in your approach. The stock market does not exist to be your friend nor foe.
AAPL and AMZN are holding onto their consolidation patterns as we head into the holiday shopping season. It is no surprise many are looking to shop online as COVID-19 cases continue to rise and threats of shutdowns continue. It would not surprise us to see many areas shut their economies down like we saw earlier this spring. Unfortunately, we cannot predict the future like many pundits believe they can. Stocks like ZM, TEAM, NFLX, and AMZN who enjoyed gains post pandemic may run again. While a few are extended it is possible traders and investors alike push into these names more so than in the past. All speculation at this point, but we would rather stick to viable trading patterns and hop on aboard when buy signals occur. Throwing darts at stocks is not a sound strategy in the long run.
AAII survey once again shows Bulls are in control of the survey. Last week the percentage of bulls in the survey hit 55.84%. This week it has come down to 44.35%. Bears crept up from 24.87% to 26.36%. Not a large move as many of those who were bullish hopped into the Neutral camp. There are a lot of bulls in the market, but how many are staunch bulls ready to maintain their stance? Time always has the answer. It is our job to maintain acceptable risk levels striving to take advantage of every proper opportunity this market gives us. No need to sit on the sidelines when we can make gains. Losing out on gains is almost as detrimental as not cutting losses short.
We hope you have had a great week of trading and wish you the best of luck the next two days. Next week we have a shortened week for the Thanksgiving holiday.
