The market continues to show strength on the upside. By taking a step back and looking at the weekly price action for the indices, one could see the hammer like candles printed from the recent pull back. The hammer candles highlighted how quickly this market has snapped back. The Nasdaq 100 made another new multi-year high last week, while the DJIA, SP500 and the Russell 2000 are near their all time high. Until this market shows a clear sign of a top, one should continue to trade the price and let the talking heads make a fool out of themselves by trying to call the top. The fact is we won’t know the top is made until after it has been made. Continue to trade defensively and manage your risks.
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Disclosure: Long DIA Call.
