The Bulls Keep Charging

The bulls keep charging upward trampling any bears that happened to step into their path.  I like some everyone else see the indexes as extend and common sense would suggest a rest of pullback should occur soon.  It took me a long time learn that when the bulls are this feisty that try to apply common sense left me standing on the sidelines and missing out on an extraordinary bull run.  I can only assume that money is pouring into funds and 401K plans because of the fear of missing out.  There are now analysis’s which have built a case for Dow 30,000.  If you think that can’t happen, just go back and study the late 90’s tech bull run.

Please understand that I am not predicting that will occur I’m only pointing out it has in the past, and the possibility exists.  Common Sense may not apply.  Stay with the trend but guard against complacency by having a plan to protect profits and capital if the bears return.  Remember reversals can be swift and brutal but a prepared trader and avoid the pitfalls of emotional trading.

On the Calendar

Tuesday’s Economic Calendar begins with a Fed Speaker at 10:00 AM followed directly by the Jolts report.  Consensus for November on job openings is expected to grow to 6.038 million.  With the country at seen at full employment, supports the concern that the lack of qualified workers is now limiting company growth.  After that, we only have a couple of bond auctions to close the economic calendar day.

On the Earnings Calendar, we have 13 companies reporting results.  Notable before the bell is AZZ and SCHN and after the close is WDFC and SNX.

Action Plan

After a slightly weak beginning to the trading day, the bulls once again showed their tenacity by pushing higher.  The DIA closed down a whopping 0.05% while the SPY, QQQ, and IWM pushed upward to set new record closing highs.  Go Bulls!  Currently, the Dow futures are pointing to a slightly higher open this morning.  Oil futures are also pushing higher this morning as winter demand continues to grow with the persistent cold temperatures around the country continue.

I fell like I’m beginning to sound like a broken record, but the bulls are still in control so I will say with the trend.  However, with the market looking as if its extended at least in the short-term we should closely monitor price action and have a plan ready if profit-taking begins.  The bears haven’t eaten in a very long time so given a chance expect them to bite at any time.

Trade Wisely,

Doug