Stocks brush aside fears over a Greek default and push higher. Those who have been following the price of leading stocks have noticed the underlying bullish nature of this market. We have been long this market and were rewarded today. Opinions simply do not matter and only price pays. Today was a solid session and even volume cooperated. At this point we will continue to execute our plan and avoid the noise.
The action was bullish all day long. Even ORCL’s decline could not hold down the tremendous move. The NASDAQ was able to finally clear the high it set back in 2000. It was the last major index to clear its old high. Now, it is whether or not the NASDAQ can continue to hit new all-time highs.
Sentiment continues to favor neutral and bears. AAII saw bulls only register at 25%. Bears ended the week at 34%. I cannot say we are surprised given the rhetoric being spewed from CNBC and other financial news outlets. NAAIM Exposure index dipped below 60%. A lot of active managers missed today’s move given their allocation. Had they been following Big Wave Trading they would not have missed today’s move.
Today’s move is particularly important because we were able to breakout to new highs and volume was higher. This entire move has been riddled with low volume breakouts. Perhaps today is the start of something bigger than we have seen over the last few years. Before we get too excited we must remain focused on the task at hand. Whatever hand the market deals us we will play.
Another good sign is we continue to get new long signals. For quite some time we have been receiving long signals even when the market looked shaky. A bear market would not produce this many new long signals. As these new signals present themselves we continue to take them. Our only issue now is shedding laggard to make room for these new long signals. As we were saying in the chat room today trying to find room for new longs is a good problem to have.
While others are trying to figure out what to do next we will continue to win. Price is all that matters to us and controlling our risk. Now, after tomorrow we will go out and have a great weekend. Enjoy and we’ll see you next week.
