THE GENERALS ARE LEADING

The DOW broke out today to a new 52 week high. The S&P 500 and the Nasdaq also had good runs today. I'm still a bit concerned about the volume behind the moves, but you can't ignore the price action. The generals (larger companies) are definitely leading the rally. I don't know that I would chase the move here. If you didn't get into any bullish positions on Thursday or Friday (or even early this morning), I don't recommend chasing it right here. Wait to see if there is a pullback tomorrow that you could buy into. If a pull back doesn't occur, wait until there is a better reward to risk for a trade. You could keep an eye on the financials. They moved up big today after not participating much in the market move on Thursday and Friday. Some of the stronger patterns include COF, AXP (although I would wait for a pull back), MS, and USB. I'd include GS on that list if it can get back above its 50 day MA. My "A" trades have been doing well...AAPL, AMZN, APA, and APC. My puts have lost value, but they provided a nice hedge for this latest move. The market is in a shorter term overbought condition, which could mean that a short term pull back could happen soon. I've noticed that a lot of pull backs within this latest uptrend have occurred intraday. In other words, the market could pull back 50 points at the open, but end up rallying 100 points before the end of the day. This is an advantage if you can watch the market throughout the day...but also a big disadvantage if you cannot. CVX has a nice ascending triangle forming and could continue to move up if it break above that resistance. There are a lot of fund managers that need this market to continue to go up through the end of the year. This doesn't mean that it will, but it does mean that there will be some buying pressure going into these last eight weeks. I'm still amazed that this market continues to go up despite some of the technical breakdowns. If anything, you have learned how important it is to trust the trend...even when you think the market should be doing something else.