New Momentum to see why, but this bull is looking a little tired and I would expect a pull back this summer. Let me go over a few facts here;
- It is now more than 100 days since a 3% pull back, that has never happened in my records going back to World War Two.
- We are over 20% above the 200 day moving average a classic overbought sign
- If you bought the S&P500 in January you are up over 19% -- that is two years of gains in a half a year.
- Bull runs are often in 26-week spurts and we are 21 weeks into this bull.
This is a chart for you, please don’t get hung up on it, this is not a magic indicator. You can get the same results from drawing MACD over a chart of SPY. Click on it to enlarge it.
good time to enter your hot tip stock, and today buy a nice stable ETF such as SPY, DIA or XLF, better yet TBT, with a near by trailing stop. There will be a better day to buy long shots.
So if you need a theme song for this time, here is is: Don't Go Chasing Waterfalls.
“After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting.”
- Jessie Livermore