Bulls Asserting Themselves, But…
When we left off on Wednesday, the stock market had powered ahead for four straight days, but I was not convinced that the bottom was in. And I am still not. It was a really fun run that we thoroughly enjoyed with all indices going to new highs except for the NASDAQ 100 below. Of course, the index may play catch up in the coming weeks. Some of our non-leveraged, non-aggressive models have not signaled a new lower risk regime yet, which usually starts to happen into weakness like we saw last month.
The Volatility Index (VIX) has certainly calmed down over the past week. But to be fair, it never really popped like it normally does into weakness. Instead, it is flirting with new lows which is good longer-term.
The next step would be for the NASDAQ 100 to close above this week’s high and then 30,500.
And participation you ask? It remains stellar and widespread. All-time highs this week. This indicator has kept me from looking at anything other than a bull market correction and more new highs later this year.
A very hot and humid weekend is here. With Teri away on a yoga retreat, I will have to find a way to survive. A few for sure things. No bed made. No blinds opened. No cooking in the kitchen. It’s the little guy’s last weekend before heading off college so we’ll get into trouble somewhere. While he is very excited about the next chapter, I am a little freaked out losing my mini-me.
On Wednesday we bought more MKC and more WM. We sold QID, SDS, SVRA and some GOOG. On Thursday we bought SSO, XCEM, more HYG and more MQQQ. We sold PDBC, RECS, some ECL, some TOST and some VGK.
