It is difficult to come up with new ways to describe the unrelenting strength in this market. It clearly is at an extreme level but it is making mincemeat of anyone that dares to challenge the mighty momentum. It will eventually come to an end, but as the old saying goes the market can stay irrational far longer than you can stay solvent.
Weeks ago when I said we need to ride this trend to the bitter end, I didn't expect it would persist this long and be this lopsided. It is a good reminder that it is a mistake to think in terms of what is reasonable when trying to predict the market.
What I continue to find most notable about this market is how many promising charts there are. The indices and some of the big cap names are very extended but when you look at the hot stocks in biotechnology and small cap technology, they are not nearly as stratospheric.
I suspect that it will be some poor responses to earnings that will finally slow down this rampage. I see Texas Instruments (TXN) and Cree (CREE) reacting poorly to numbers after the close, but there isn't enough of a theme there yet for it to matter. Apple (AAPL) has been lagging the last few days and that hasn't been an issue yet either.
It is hard to not anticipate some market downside soon but, once again, I'll say that you should stay focused on individual positions and let that be your guide to market timing
Have a good evening. I'll see you tomorrow.
