This market continues to run over the skeptics and bears. If you aren't wildly bullish and happy to buy, then you are on the wrong side of the action. After weeks of a straight-up rally, you might think that the buyers would be a little more cautious, but on the contrary, they are sick and tired of missing out and are going to put more money to work, because obviously the technicians who keep talking about things being overbought just don't have a clue.
What is most interesting about this market action is the lack of emotion to accompany what looks like euphoric action. Breadth was quite good, but volume was quite light. If it weren't for the CNBC anchors who act like they will receive a bonus when the DJIA hits 11,000, you sure don't get the sense that many folks are loving this rally. As I've been saying for about six months now, it is one of the most hated bull markets I've ever seen.
The dilemma for traders at this point remains what it has been for some time now. Many say we are too extended to justify aggressive bullishness but the momentum is too strong to fight. The only viable approach from my standpoint is short term bullishness. Be fast to take gains when you have them, keep stops tight, and keep on doing it until the trend changes. Although it is extremely tempting, the worst thing you can do is to keep on trying to anticipate a top......
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