Despite all the political rhetoric, the markets keep moving higher. However, evidence of exuberance is now showing up. Today the Dow and the S&P 500 gapped up in the overbought condition. This is usually a warning to start looking for profit-taking. Until then, stay long. Numerous J-hook patterns are working extremely well. With simple portfolio cultivation, there is really no reason why the vast majority of positions shouldn’t be showing profitability. The length and magnitude of this market trendwarrants taking profits in sectors that have run their course and moving into other sectors.
January 12th Daily Market Comments
Despite all the political rhetoric, the markets keep moving higher. However, evidence of exuberance is now showing up. Today the Dow and the S&P 500 gapped up in the overbought condition. This is usually a warning to start looking for profit-taking. Until then, stay long. Numerous J-hook patterns are working extremely well. With simple portfolio cultivation, there is really no reason why the vast majority of positions shouldn’t be showing profitability. The length and magnitude of this market trend warrants taking profits in sectors that have run their course and moving into other sectors.