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.
