The most hated rally continues as stocks lift off the lows set during the morning hours of the trading session.  Stocks opened lower as the dollar gained strength as the Euro continued to see weakness as the Greek debt issues loom over the market.  Once again the market saw support enter in the market and saw a buying pick up with the release of the FOMC meeting minutes.  The market had a positive reaction as the Federal Reserve will keep the liquidity spigot open and has yet to indicate a change in its stance towards loose monetary policy.  A minor pullback off the highs doesn’t hide the fact this uptrend can continue and more than likely will.

I waffle between if this is the most hated or most feared uptrend in the history of the stock market.  In the early 30s the Dow Jones Industrial average rose more than 200% from its lows and I can imagine we may have seen the same pessimism.  Trading what you see rather than what you think is a very difficult thing to follow as many traders allow opinions enter into their decision making process.  While opinions will sell advertising minutes on CNBC, Fox Business, Bloomberg etc it won’t make you any money.  If you have been bearish because you believe the economy is in the tank you are losing money.  Conversely, if you were a bull you’ve made money, but were you a bull when the market corrected more than 60% in 2008?  Opinions are like assholes. everyone has one and they stink.

I don’t mean to be harsh, but it is the reality of the situation.  Stocks hitting new highs is not a bearish situation, it is very bullish.  If the number of stocks hitting a new high begins to falter and leaders roll over then it is a signal the market will more than likely turn lower.  Keep your analysis simple and to the point.  Price action is by far the most telling and right behind price is volume.  In a normal market we’d see volume rush into stocks as they hit new highs.  However, this market we tend to see new highs and then volume comes in after the stock makes the high.  This is precisely why stock speculation is more of an art form than it is anything else.  If you followed the IBD method for a follow through day you would have missed plenty of stocks breaking out after the 2/11 day we called a FTD.  Keep it simple.

This market continues to treat us well and we will not be keeping the yearly prices for gold and platinum memberships where they are currently.  Take advantage of getting 4 months free when you sign up now with a gold and platinum before they go higher.