Follow Through Tuesday?

How fast time flies. We are about two months into the rally and the masses are calling for an S&P move to 920, 950 and then 1000. I guess if it’s that easy I’ll just buy the OEX and call you in a couple of weeks.

We all know it’s never easy, but the bulls sure do hold the cards. When the market rallies continually on bad news, what can the bears do? It’s such a momentum market right now and contrarian traders are dropping like flies and going strait to the wood chipper. Staying nimble is the order of the day and accepting the fact that the market could continue to run here is critical. It’s becoming much tougher to navigate here and the dilemma can be twofold, do I chase names higher or do I look for names to short? First of all, never chase, wait for pullbacks, and looking for shorts is fine but let a reversal dictate how aggressive you will be.

The bulls still hold the cards so trade accordingly. By way of review, my Sunday letter killed it again. Yesterday we saw EOG + $5, CHK + $1.80, SLB +$4 along with some other smaller winners.

From a psychological and technical perspective, the close over 900 in the S&P is certainly bullish, how far we can push the envelope will certainly be interesting. Good luck today. If anything significant happens with our positions look for an update on the site.

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