New all time highs is the next step for the market
No doubt all this talk about 15% corporate tax cuts are fueling this market run. If you have been short the last two days…my condolences. But trading is going where the market wants to take you, and not being in the backseat strapped in a car seat like a child, making demands and telling your parents where you want them to go. Because in the end, you are going where your parents intend to take you and the same is true with the market. You can’t change the stock market’s mind, you can only accept that it is going to go where it wants to go and no amount of crying, anger or begging is going to change a thing.
One indicator I haven’t talked about much lately is the T2108 – the percentage of stocks trading above their 40-day moving average. I believe this is one of the best gauges on the health of the market, and today it is as healthy as it has been pretty much all year long, with 67% of stocks now trading above their 40-day MA. Consider that just 8 days ago it was trading under 40%. That is a remarkable move!
Then you have the VIX – it is trading in the 10’s… only after trading over 16 just last week.
The point of all of this is, the market has broken out of the bull flag, followed through, and now the S&P 500, Dow, and Russell are all on the cusp of making new all-time highs with the Nasdaq having just done so and crossing 6,000.
You tell me where the market is taking you?
S&P 500 Chart
Current Stock Trading Portfolio Balance:
6 Long positions
Recent Stock Trade Notables:
Teradyne (TER): Long at 31.16, closed at 33.03 for a 6.0% profit
UPRO: Long at 92.75, closed at 94.78 for a 2.2% profit.
Murphy Oil (MUR): Long at 28.69, closed at 27.89 for a 2.7% loss.
Las Vegas Sands (LVS): Long at 57.24, closed at 56.53 for a 1.2% loss.
UPRO: Long at 91.94, closed at 96.54 for a 5.0% profit.
Alibaba Group (BABA): Long at 105.736, closed at 108.22 for a 2.4% profit.
Facebook (FB): Long at 134.27, Closed at 139.23 for a 3.7% profit.
CDW Corp (CDW): Long at 58.65, closed at 58.91 for a 2.7% loss.
Redhat (RHT): Long at 82.41, Closed at 83.53 for a 1.4% profit.
Ambarella (AMBA): Long at 57.15, Closed at 55.52 for a 2.8% loss.
Alibaba Group (BABA): Long at 104.73, closed at 106.05 for a 1.3% profit.
Broadcom (AVGO): Long at 218.63, Closed at 222.71 for a 1.9% profit.
American Airlines (AAL): Short at 44.76, Closed at 44.03 for a 1.6% profit.
UPRO (Day-Tade): Long at 95.35, closed at 96.50 for a 1.2% profit.
OZRK: Long at $56.12, closed at $54.69 for a 2.5% loss.
FNSR: Long at $34.25, closed at 34.70 for a 1.3% profit.
UPRO (Day-Tade): Long at 96.92, closed at 98.03 for a 1.2% profit.
JP Morgan Chase (JPM): Long at 87.21, closed at 89.67 for a 2.8% profit.
Chevron (CVX): Short at 110.03, covered at 111.85 for a 1.6% loss.
Flex Technologies (FLEX): Long at $15.62, closed at $16.57 for a 6.1% profit.
Baidu (BIDU): Long at $174.70, closed at $187.00 for a 7.0% profit.
Ollie’s Bargain Outlet: Long at 33.20, closed at $32.50 for a 2.1% loss.
Corning (GLW): Long at $26.98, closed at $27.45 for a 1.7% profit.
Illinois Tool Works (ITW): Long at $127.74, closed at $129.86 for a 1.7% profit.
Marriott Int’l (MAR): Long at $86.16, closed at $87.51 for a 1.6% profit.
