Markets lean higher, as does my account. I take a
loss on some more sold calls in Boeing. The massive run up has cost
me on at least two legs of BA this year. I initiate longs after
earnings on BBY ETSY W (Best Buy, Etsy, Wayfair). There is some
follow through on the breakouts.
Someone noted that a remarkable 90% of S&P 500 stocks were trading above their 50 day moving average. This has been observed 11 times since 1950. Every time stocks have been higher a year later, average gain another 11%. Obviously, with so many stocks above the moving average, the market has already rallied some. The straight up move has many people nervous, including myself. This stat makes me less nervous.
Don’t fight the Fed, don’t fight the tape. The path of least resistance, and causing the most consternation is likely higher. Too many feel like I do, that we have come too far too fast, but the tape remains strong, the market is leaning higher.
Someone noted that a remarkable 90% of S&P 500 stocks were trading above their 50 day moving average. This has been observed 11 times since 1950. Every time stocks have been higher a year later, average gain another 11%. Obviously, with so many stocks above the moving average, the market has already rallied some. The straight up move has many people nervous, including myself. This stat makes me less nervous.
Don’t fight the Fed, don’t fight the tape. The path of least resistance, and causing the most consternation is likely higher. Too many feel like I do, that we have come too far too fast, but the tape remains strong, the market is leaning higher.
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