QUICK THOUGHTS: BRINGING IT
- The Dow is sitting at a tremendously important point of resistance. This was the stopping point I illustrated in the weekly review on Sunday. We are sitting on it almost exactly. There is a bullish and bearish scenario of what can transpire from here. I will go over both on the weekly review this coming Sunday.
- The leadership of the SOX continues to be a bullish indicator for the market.
- The leadership of the Nasdaq also continues to be an extremely bullish indicator for the market.
- Speaking of the Nasdaq...the NDX (Nasdaq 100) is up against a pretty significant generational trajectory point here. Historically it has led to sideways or down periods for a number of months. Doesn't necessarily mean that it will this time, however. Again, I will go over this one in the weekly summary on Sunday.
- Transports breaking out is another positive that is certainly worth mentioning.
- Hate to be a broken record, but let's not forget about how well the Russell 2000 is acting. Another leader that is doing exactly what it's supposed to be doing at the exact right time.
- Everything from the symmetry of the market to the leadership of specific indices falls in place. It speaks of the general health of this market and portends future price increases throughout Q4.
- Interesting how the talk of the low put/call ratio was such a topic last week and has disappeared with a higher market. As discussed last week, the put/call was the incorrect focus at the incorrect time. Texture is everything in the market.
- Michael Bigger had a cool piece on his website today about leaving $20 million the table on PCLN over the past 10 or so years. I have discussed this subject numerous times in the past, but feel it is important enough to pound away at it regardless. The real gains in the market are made by sitting tight. The wisest and most experienced investors will tell you this over and over again. Jumping around in a bull market is a fool's game. Your universe of stocks should be small and your activity in that universe should be as blissfully inactive as possible.
