The market is not making it easy for the bulls or for the bears as it continues to make record high. Just in the
previous session, the DJIA made a new all time high with confirmation from the DJT and the bulls see it as coast is clear for higher high. Then today, the DJIA making another new all time high by a slim margin of 0.30 with the DJT failed to close with a new high, and that gave the bears something to smile on. But before the bulls move to the sideline or the bears starting a field day, the Russell 2000 said not so fast. The small cap Russell 2000 closed with a new all time high that surpassed the previous high by more than 1% or 12.40, and to cast more confusion into this picture, the tech heavy Nasdaq 100 also closed with another new multi-year high and showing improved market breadth. So what should one do?
Indices:
NYSE Market Breadth:
Nasdaq Market Breadth:
As always, there are three possible positions to take, cash, long or short. If you are not chasing performance, then cash might be the most prudent position to take for now. But if you need to be long then you need to exercise your stock picking skill and use appropriate stop. Finally, if you want to take a chance at shorting this market, then look for those stocks that might be bouncing off the recent breakdown sell off and wait for the resumption of their downward trend before considering shorting them.
As this market continues to fluctuate in record territory, remain defensive and trade what you see.
