After being very cautious Thursday night on “job number’s eve” I’m fully back in the bull camp. It took a seesaw session on Friday with stocks closing near their highs and a number of other indicators to sway me, but I really think this rally has a lot further to go. Yes I’m in cash and I’m not happy about completely following my system, but it could be worse. I could have gotten short sometime this week and not only would I be frustrated that I missed out on Friday’s rally, I would be losing money on my would be shorts.
I really can’t figure out certain trader’s obsessions to try and pick a top in these markets and then proceed to get short. All of these charts below have certain aspects about the chart hitting new “rally highs”. With all of these indicators hitting new highs one would have to be crazy to stand in front of this bull train.
- % of stocks on the Nasdaq above their 200dma
- % of stocks on the Nasdaq above their 50dma
- % of stocks on the Dow above their 200dma
On another confirmation note, a proprietary chart that I’ve developed has turned very bullish by breaking out of a 6 month consolidation pattern. Stocks that I am watching for Monday are CF DE FO LULU and did anybody catch that 21% move on BORN and near 8% move on DDS? Those were a couple of bullish setups on Thursday and markets that have topped don’t have stocks making moves like that.
