While MarketSpeculator/BigWaveTrader is on vacation on my stomping grounds of Maui, I will fill in with some brief comments, until he returns. — Josh Hayes
The market had a very strong session today and despite finishing off the highs overall it was a great day. The biggest positive of today is two fold. For one, my current holdings had a fantastic day with the biggest CANSLIM positions having some of the bigger gains. Second, my main long scan is full of stocks. These two events tell me that today was a great day, despite us finishing off the highs.
For those of you familiar with me, you know that I do not read or watch anything anywhere on the stock market. I simply use charts on the indexes and individual stocks. When I see a chart pattern that is extremely bullish based on the past 130 years of historical data about the markets biggest winners then I dive a bit deeper into the fundamentals. However, when it comes to macro events, I could care less. When you live on Maui and have made your living via charts the past 12+ years, you realize more and more everyday what a pile of junk most traders infect their brains with.
The bottom line to that is that if you are looking for a “reason” as to why the market did what it did today well I can’t help you with that. If you are looking to make money on the actual actions of the market based on what people “believe” caused the market to move well that I can help you with.
This market continues to be in a strong uptrend establishing itself well above the 50 day moving average. Until the market turns lower on heavier volume making lower highs and lower lows, along with my current holdings showing distribution, then and only then will I entertain a possible topping scenario. Until this occurs, I am just riding the trend higher. That is how you make the real money, and not just scraps, in the stock market.
As Big Wave Trader knows by now Maui is a beautiful place and I doubt you will be hearing from him until he returns to the mainland. Can you blame him? I hope everyone had a wonderful holiday season and while it may not be an easy transition back into work mode, I will be here doing as much as I can to make sure you continue to profit from this rally. Aloha everyone.