I love day like today. Not only do we traders make money by following the trend that has been developing over the last many days, we also get to watch the pundit struggle to explain why the market is going up when its supposed to be going down. I have seen headlines that says the market ignored the bad news and moved up, that the market got fired up by the news from IBM on buy backs and outlook, etc. If you have been following this blog you know the bias was heading to the long side, so its no surprise when some good news (IBM) comes out, it out weighs any bad news on inflation. There will be days that are just the opposite that will confound the pundits, but you can be assured our momentum charts will be confirming the move that happens.
All of our momentum indicators are in solid long positions. Our slow or long term momentum has moved into positive readings. This is still a neutral rating until we rise above +5, but its going to take some serious reversal to prevent us from reaching that territory.
Now that we feel good, lets also be real. We can expect a little correction to happen after three nice up days in a row, so let that play out before you get too aggressive. Until proven otherwise, we are working the long side.
Now check out our Top 25 Long List for some ideas as well as an update on our TradeWinds Black Box.
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