After a couple of weak closes and a brief pause, the market is en fuego once again. It was all bulls today with great breadth, good point gains and new highs. The convenient explanation for the strength was that this morning's mediocre jobs report was weak enough to keep the Fed "accommodative" but strong enough that the economy doesn't stall completely.
That is as good an explanation as any, but I believe that the strength was more a function of poor positioning and too many folks looking for a top. I'm growing weary of the lopsided action and I was hoping for some resets, but when even the bulls are rooting for pullbacks, you can be sure that the market beast will do its best to frustrate.
It is very easy to overthink a market like this and find reasons why it can't continue. The smart move has been to embrace the uptrend and stay with it. You'll hear a million reasons from the very astute bears why the market is doomed, but all that really matters is that the price action continues to be very positive.
I keep repeating that we need to stick with this market as long as the price action is good because it isn't that easy to do. Trying to time the twists and turns in the market is very appealing, but sticking with the trend tends to work much better.
I hear a number of folks calling today's action a "blow off" top, but that is wishful thinking. Keep in mind that markets that are hitting highs just don't collapse suddenly. The bulls have powerful momentum and that needs to be respected.
Have a great weekend. I'll see you on Monday.
