Despite many skeptics and an increasingly lofty market, Mr. Market continues to party nonstop.  The major indices not only held technical ground but advanced confidently. Breadth was positive all day and the action in small caps was encouraging. Volume was light but to be expected following option expiration and during a short, holiday week.  Once again the bulls managed to close with a flurry of buying and that is a positive.

On a more sobering note today’s leaders were oil and metals which gives hints of pessimism creeping into this market. Furthermore, retailers were held back today and the Semi’s did not follow through from Friday’s move. These issues must be noted and tucked away for the future but do not alter our current opinion. People will often allow factors other than the current action to affect their investment opinions. We only know what we see; nothing more, and today we see higher prices.

While many of our stocks look a bit extended we continue to find new trading opportunities and stocks that look to be setting up for another move higher. This is good action that indicates a healthy market. TSP members who have followed our lead should hold tight and enjoy this advance. While we may see some profit taking or consolidation on the horizon, unless technical levels are breached we remain patient and let Mr. Market party on.

Have a good evening