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Bulls on Parade; Volume Surges with Stocks

An overload of economic data had the market rattled at the start as volatility ruled the first half hour of trading.  Once the market settled it was off to the races again as leading stocks and volume raced higher.  The story is repeating itself with leading stocks continuing to outperform the market.  We have witnessed this same story since Monday and those who are going to fight the trend will pay dearly.  Today was just another example the strength that is underlying this stock market rally.  Another great day for those who are long leading stocks.

Fears over the dollar drove precious metals higher Wednesday as Gold closed above 1020 an ounce.  Silver ripped along side gold as it soared above 1740.0.  Remember, as the 200dma for S&P 500 has a positive slope precious metals always lead the market higher.  It is no surprised given the monetary policy of the Obama Administration and Federal Reserve that precious metals will continue to go higher.  In addition, China has lifted a ban on its citizens holding gold.  Thus, creating more demand for the precious metal.  There are plenty of metal stocks moving and once again we continue to be on top of the game at Big Wave Trading.

Once again we had another explosive day as far as New Highs again with 702 on the NYSE and NASDAQ.  New Lows were non-existent with only 4 stocks hitting the new lows.  If this doesn't strike you as bullish, then you need to go study history.  When you have the number of New Highs versus New Lows that is bullish.  Especially with leading stocks continuing to outperform by breaking out of bases.  This isn't the end of the rally we may see pull backs, but this market will be higher.

I've already repeated myself, but the point here is that this market is bullish.  We'll see pullbacks as they are apart of the natural movements of the market but this market will be bought.  Always keep your losses small and your winners run.  Be smart and keep positive.

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