The market found support again at 1225 and we expect it to run higher. Volume was average as the market raced towards our next target of 1250. Once again, financials rallied hard. The TradeMaster portfolio is long financials in expectation of another rally higher with that sector leading the charge.
Everyone wants to be long the market, no one wants out. This mindset created an atmosphere where rallies are sharp and pull backs are mild. Unless you are long already (which we were) it becomes extremely difficult (and risky) to enter new positions.
Overall, the bulls dominate this market. Either add to current positions, or jump in banks and gold miners with tight stops. No matter what, keep tight stops, if this market turns it will happen quickly. Until it turns, and I have no reason to believe it should, there are no reversal candles present. Stay long-sided.
Here is a portion of the TradeMaster portfolio with the date of purchase next to the ticker symbol. The price is based on the daily closing. I am bullish on the market, but vigilance must be taken on your open positions. I am again increasing stops for open positions.
XLF (11/12) - $14.35 The financials did not rally in the way I planned, but until a major support level is broken this position is not threatened. Less aggressive traders may want to bump their stop to $15.
NANO (11/23)- $11.99 Moved the stop up. I was unhappy with the lack of buying last week although Thursday was bullish accumulation. The stock should stay above $12 and hit $13.50 in the short-term.
GCI (11/23)- $14.25 Moved the stop up. Going as predicted and volume is good. Let's see if it can retake $16.25 before gassing out.
CVTI (11/24)- $9.25 Going as predicted and volume is good. Resistance is influencing the stock and it may not have enough juice to get over $10. If I am right it is forming a mini channel that should take it to $9.93.
HMY (11/30)- $11.69 Moved the stop. The gap on Friday needs to hold, if not we are looking at a $9 stock. Gold is bullish and I loosened the reins following Friday's low volume drip lower. A strong bull protects $12.15.