The Trend Is Still Your Friend

 | Jan 29, 2013 | 4:33 PM EST  | Comments
  • Comment
  • Print Print
  • Print

It may sound trite, and I've been repeating it quite a bit lately, but the only piece of advice you need to deal with this market is "The trend is your friend."

The bears were optimistic this morning, but a mediocre housing number and a poor consumer confidence report brought in dip buyers, who quickly ran the market back up and pushed it to another strong close.

It is almost comical how toothless the bears have been recently. They continue to present all these great reasons why this market is on the brink of disaster, but no one seems to care. The negatives will matter at some point, but trying to guess when is futile.

While the indices did very well, the action is narrowing and slowing a bit. There are still good gainers, but momentum is cooling and the action isn't as lively. Amazon (AMZN), however, seems to be lighting things up after the close, and index ETFs are trading higher, too.

Probably the most annoying thing about this market is CNBC's obsession with the 2007 highs. It is a news story that may receive attention but it sure doesn't make us any money. Unfortunately, I'm sure they will stick with that story line for many weeks.

My best advice lately has been not to short this market until there is actual price weakness. If you have done that, you are far ahead of the prognosticators who have been predicting a top for weeks. Stay with this market until there is actual evidence of price weakness.

Have a good evening. I'll see you tomorrow.

Columnist Conversations

A gravetone doji candle formed on the weekly Facebook (FB) chart. This candle is defined by a narrow opening a...
The iPath Bloomberg Sugar SubTR ETN (SGG) is pushing up towards a test of its prior rally peak at 33.94, which...
We added some call plays on Microsoft and Celgene today on the very strong price action (msft) and flow, and t...
Juniper Networks is the number three gainer in the S&P 500 today(behind Amazon/Microsoft). The stock...



Columnist Tweets


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.