Market action seems to indicate that the market is now in an uptrend again. We should see some sharp gains barring some seriously bad news in the market. My assessment is still that we are in the final leg of the bull market run that started in March 2009. I have managed a 200% return in the last 12 months while never being invested more than 50-60% in the market (in retrospect, that was a mistake but I was nervous :-)
Stocks of note are Intuitive Surgical (ISRG) that has just broken into a new high territory, Chipotle (CMG) that is attempting to reach a previous high set a long time ago, F (that broke thru major option related resistance on Monday 3/1/2010) and Celgene (CELG) that has broken out of a base recently. (I own all these stocks, except Ford which I sold for a 100 percent gain on Monday. I do expect to reenter my position in F in the very near future after watching how it behaves). My indicators are not flashing any buy signals for Apple (AAPL), yet it should be noted that in the last run of the market, majority of the indicators that work in the early waves do not flash buy signals, yet the stocks continue to move up. So there is a divergence in the stock price and the indicators. The battle between fear and greed is at its best in wave 5 when the most profits can be made in a short time span.
This rally has been amazing since throughout the rally, the market accumulation distribution rating has remained low, and even dropped significantly in the recent wave 4 pullback. Surely, no one can accuse the market of irrational exuberance during this bull run.
No comments:
Post a Comment