Lowered expectations for the monthly jobs report due to poor weather set the stage for a gap-and-run reaction to a decent report. Once again, it was straight up on good breadth but mediocre volume. That has been the case every day this week, as an overbought market become more overbought. If the buyers have any worries or doubts, they aren't showing them. There isn't much new that can be said about this amazingly strong market. Any and all bearish fundamental and technical arguments are just plain wrong. It doesn't matter who you are or how smart you are, if you don't love this market, then you are on the wrong side of the action.
The problem is: There is no way to be logical about when we might see a possible top. We are already past the logical points were we should have reversed course, or maybe struggled a bit. If you can't use logic, then the only alternative is to have faith, and that seems to be the best investment approach right now. This parabolic move has picked up steam all week, but we are heading into a Monday, which has been the best performing day of the week by far, over the past year. The way to make the big money in the market is to ride the trend, but if you aren't at least a little nervous when we are this extended, then you probably weren't trading to the bottom last March. The bulls certainly deserve respect. Still, you have to wonder how much longer they can continue this sort of action........
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