CONSIDERATIONS
Some considerations:
1. I've had May come up as being an important turning point for the markets since Q3-Q4 of last year. I had a strong inclination that it would be a low based on the behavior of the market. It is becoming apparent that this assessment is incorrect. Perhaps May will bring about the elusive top? If so, this rally will have gone much further than most everyone expected.
2. The purpose of trajectory points is to gauge the behavior of the market around historically significant areas of resistance/support. A break of most relevant trajectory points, including generational trajectory points on the S&P and Dow, is in theory bullish. The Dow has now shattered all of its trajectory points. The only hope for the bears is that the S&P 500 doesn't begin running away from its trajectory, similar to the Dow. By the looks of this past week in the markets, the running away process for the S&P 500 has kicked off.
3. How little attention the markets pay to anything except the impetus to advance cannot be ignored. No form of analysis exceeds in a market of this nature, except to buy and hold. Those who have been afflicted by thought the past couple of months have found themselves heavily allocated towards cash or net short. The markets have no obligation to make sense.
4. Financials continue to lead in an organized manner that looks to have continuation in mind.
5. AAPL will be an under-performing asset well into 2014. There will be no respite for the weary.
6. The divergence between equities and commodities still rubs me the wrong way. Perhaps we are entering a period of strong USD/strong equity correlation that will render commodities helpless?
7. All of these considerations have no weighting whatsoever on my actions in the markets. I am comfortably allocated at roughly 75% long and 25% cash. When the proper set of circumstances present themselves, the cash will be put to work. Perhaps during the second half of this month. Perhaps during the second half of this year. I am in no particular hurry.
Some considerations I am making on a Sunday morning in a market that probably deserves less thought that most are giving it.
