DowJones on All Time High. Russell already enjoying. S&P to follow shortly.
Another high, bulls in charge.
DowJones looks to be closing above its All Time High. Every one is excited about that. S&P500 is not far behind and just 33 points below its all time high. After a long time, people have started talking stocks once again. All this reminds me of 2007. The markets are floating on artificial props and with one catalyst the house of cards can start tumbling down. But so far there is no such catalyst in sight and so it seems the trend will continue.The bull market which started in 2009 is powering ahead in full swing. Market has decidedly broken out of the range it was trading before I left for my travel last week. Here is 5 minute chart of today's day session.
I came in the day bullish as per this trade plan. Overnight the markets were very bullish and looking to open strong. After opening strongly gap up on good volume, market immediately went to trade at my expected day session high at 1538. It was getting clear that markets will trade higher than that. I went a probe long first green arrow (small position to test the market with tight stops) and I could manage to exit it new session high was printed shown by second red arrow. I am still getting back into my trading routine so I did not trade much and instead was looking charts and reading twitter and facebook. Markets eventually proceeded to make new high at 1542.75 indicating a strongly bullish market.
Markets have been trading above day session mid point for all of today and above VWAP. I would expect them to continue the move higher.
So what do I see now? It would seem markets will target 1546-50 area. It is very likely that S&P can attempt to break its own all time high before markets take a pause.
I reduced AAPL short at the start of the trading as mentioned in this trade plan in my stock portfolio. My portfolio is net short, mainly due to SPY balancing hedge which were not taken off due to my travel.
Day session range was 11pt+gap and overall range was 18 pt.
