Was looking for a fairly nasty pullback today; and it didn't happen. On the contrary, my stuff had a good day. So after 10 straight days of advancement and then an explosion higher on Thursday, the market was ready for some profit-taking, but after a little dip this morning the buyers just kept on coming and the senior indices finished in the green again.
This is a classic example of the contention some have that strong markets just don't suddenly collapse. There are too many folks who have watched this market levitate. For many technically-minded folks, there was no easy way to get into this market. If they were relying on charts as a guide, the charts weren't much help at all. Everything was supposedly extended and overbought but just kept on going up anyway.
But that is the way the market works. It is going to make a fool out of all of us at times no matter how smart or logical or hard-working we may be. All we can do is accept that, move on and look for the next opportunity.
Next week we have quite a few more earnings reports to come, but the majority of the big boys are out of the way now. I suspect the trading will be much bumpier. We are extended and need a rest, but those dip-buyers have missed out big and there are going to be active.
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