The quick reverse of the big gap up this morning had the bears hoping that the market was finally ready to crack, but just as the indices tested yesterday's close, the buyers jumped in and drove it straight back up. It was an impressive finish at the highs of the day just as the bears were growing shrill about how we are on the brink of disaster.
In my opening post I discussed why it pays to stick with the trend rather than be anticipatory and look for reversals. Todays' action was a particularly good illustration of how trends can continue to run as the bears keep trying to call a top. It was very costly if you were in a hurry to short the market today.
My primarily thesis lately has been that I'm not going to work too hard trying to find reasons not to like the market. Until we actually have real selling, I'm going to continue to give the bulls the benefit of the doubt. I believe you will probably lose more money worrying about a top than if actually are caught in a reversal.
The trend remains up, technical conditions are still positive and underlying support is strong. You can find plenty to worry about if you want to, but until the price action shifts I'm sticking with the bulls.
Have a good evening. I'll see you tomorrow.