Which do we follow? The news that says the Prez is about to be impeached (with help from a guy named Pecker, I kid you not), housing took a dump and the hackers are back? Or the breakout to new highs in the S&P 500, the Russell and the Snazzdaq?
Is the news of the longest bull market on record (debatable) better than the notion that the Spooz are really just at resistance with waning momentum?
Or that 1/3 of the FAANGMs and all of their Chinese counterparts (the BAITs??) are in declining trends?
Still, the market has been generally rising since April and a trend is a trend.
Check out the NYSE composite. It is seriously lagging and below resistance. I’m not saying it cannot breakout, especially when so many sectors look pretty good, but right now it hasn’t.
You giddy bulls are wrong because not every stock looks so great. And we are indeed in an old bull heading into September, when any pre-midterm posturing is likely to happen so nobody can accuse the other side of manipulation so close to the vote. And why do interest rates look poised to drop, not rise?
You giddy bears are wrong because despite the noise, big chunks of the market are rising and the advance-decline is strong.
So, what do we do, Professor Mikey?
The trend is up so that’s your direction. However, there is no law that says you have to take weak setups and go all-in. Play it long but play it cool.
But I could be wrong, too.
