The Dow Jones Industrial Average and S&P 500 hit another record closing as volume rose across the board. Janet Yellen’s testimony provided few fireworks, but we did find out rates are not about to rise any time soon. Aside from Yellen’s testimony we had a pretty good day in the markets overall. For the 10th straight session the NASDAQ was able to close in positive territory. This uptrend has been pretty impressive overall with plenty of stocks pushing higher.
It is clear from Janet Yellen’s testimony the Federal Reserve is not about to raise rates any time soon. Forward guidance will be the new “data point” fed watchers will slave over. Just like the unemployment rate became the data point for QE the attention will be paid to forward guidance. I would not get too excited to see higher rates any time soon. Higher rates will be devastating to the borrowing power of the United States. Servicing debt will become increasingly difficult if rates rise too much. The mayhem following such a situation would be far too much for the Federal Reserve to handle. Count on the Fed Funds rate to remain low for a very long time.
There are plenty of opportunities this market has presented to us. A few IPOs are being looked at in our chat room as potential candidates on the long side. We are always looking for intraday opportunities as well. Although our main strategy is end-of-day trading signals there are opportunities every now and again during the day. If you are not a Platinum member go here and sign up. Do not forget to get 30% off by using WINTER2015 as a coupon code. The deal ends at the end of the month. Do not hesitate.
The best course of action here is to continue to stay with your winners and shed your losers. It is a cliché amongst trend followers, but it makes a huge difference. An example is how we have held onto VIPS for nearly two years and the stock returning more than 500% since July 2013. While it is not 1999 where 500% would come in three months, but we will take it. These big wins make a world of difference in our portfolios.
At some point the NASDAQ will close below the prior day close, but after closing up for 10 day straight why not make it 11. It would do the index some good to consolidate these gains for a few days as to not get extremely overbought. However, we remain in a good position to see the markets continue to climb higher. Stick with this trend and cut those losses short.
