[Early Summary for Weekend]
Dear Member:
Without going over each position as I ordinarily do, I wanted to touch base since I'll be on the move tomorrow afternoon and won't get home until Sunday. Today was undoubtedly a blockbuster day for the bulls, though earlier in the week the bears had a pretty fair run themselves. The Dow Industrials jumped more than 200 points for the first time in 51 weeks and the SP-500 hit a new record.
As I'm sure you know, I did not trade this week. While that is a little unusual, I believe it can be important to sit on the sidelines at times and I think this was one of those times even though I missed a big up day. The up/down moves this week indicate an unsettled market to me. From the bullish viewpoint, I like the fact that the SP-500 has moved into uncharted territory. From the bearish viewpoint, it was disturbing to see the market dump on not so bad earnings news from Alcoa (AA). Which way tomorrow? No one can tell with any degree of certainty. No one. Meanwhile, it is important to remember that we are now in earnings season again, and the market reaction to AA leads me to believe that traders remain on the jittery side.
I am standing by right now to see if we can get a clear direction and I don't yet see that direction. If the SP-500 can hold above the old resistance tomorrow and early next week, we may, indeed, have the next leg up in the rally. Let's see before we place any additional money at risk. I definitely intend to avoid the "irrational exuberance" which was the downfall of so many not so long ago.
Have a great weekend and let's keep our fingers crossed that the SP-500 can hold above the old (and just broken) resistance.
Bill
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