On May 6th the Dow Transports, and more importantly the Russell 2000 made new highs to confirm the recent highs made by the Dow 30 and the S & P 500 .
While I still advise prudent investing (selling calls - trimming positions that are stretched) this latest breakout with confirmation lays the groundwork for higher prices in the future.
I continue to believe that any pullbacks will be contained , and why any correction might have the feeling of being catastrophic, they should be used to add or initiate positions.
Some things I've noted, there is no euphoria in the wind , most Pm's are still under invested , frustrated and looking to add where they can. Last months Short interest on the NYSE was recorded at 404 million ! There are plenty of disbelievers.
As I have outlined in past instablogs sector rotation continues and is very healthy for the overall market and along with the Russell 2000 participating suggests strong broad participation by all.
Don't chase , pick your spots , the market presents opportunity daily.
One example - QCOM is a name that can be added here .
Disclosure: I am long QCOM.
Additional disclosure: Stocks for Income means just that at Stocks4Income.comIf you have missed this rally, need advice ? e- mail us @ email@example.com