Positive economic data helped the market push higher, but the headline of a production freeze helped push Crude Oil above the $30 mark. Volume was higher on the exchanges as today was a follow through day for the markets. While a day 3 follow-through days are rare they can happen. The blemish on today’s follow-through is certainly the v-shaped nature of this new confirmed uptrend. While many were looking for a crash we were simply waiting for the market to produce trade signals. Whether or not this will last is anyone’s best guess. At this point, we have a confirmed market rally and we are looking for new longs.
Tomorrow may bring us new information where we may have to adjust, but what we know right now is we have a confirmed uptrend. While there are many reasons to doubt this market we have been here before. For the rally from 2009 through 2015 this market has been doubted all the way up. We did have a blip in 2011, but the downtrend did not last very long. Is this new rally start of a new bull market? We do not know, but we do not want to miss out on a new rally.
If you have been on the sidelines you should have missed the volatility and drawdowns. For the year the S&P 500 is down 5.73% and the NASDAQ Composite is down 9.45%. Missing the first month and a half from the market you would have been well ahead of the game. Those trying to be a hero bottom picking have had a tough time and likely down much more than 10%. Many hedge funds are showing double digit losses. Our subscribers were able to benefit from our expertise and avoid the carnage seen in January and most of February. Benefit from our expertise.
While no one knows whether or not we are going to push higher, but we are going to be prepared. The last thing we want to have happen is missing a new market rally. If we are wrong our exit signals will limit the damage. While others search the reason for a rally we want to execute our strategy maximizing our returns.
