Wednesday Market Wrap 3/6/13 ..Getting Interesting



It’s hard to believe the Dow Jones Industrial Average printed historic highs today. There wasn’t any champagne, kazoos or funny hats. This time there were about fifteen people on the NYSE floor, and that included the key grip dude and a couple of producers at CNBC.

The S&P (SPX) is about twenty five handles from its all time highs. The Nasdaq Composite only needs about 2000 points to hit highs. You may remember the bubble in 2000. Tons of fun.

The Russell 2000 hit all time highs yesterday and all is well with the world. My mind races as I try to block out the white noise, the opinions and prognosticators at every turn. There are so many scenarios that could unfold, so I’ll just take it day by day. We do need to pull back, it would be very healthy. Make no mistake , we will pull back.

My strong recommendation, whether it be with my ideas or your own, is to play with smaller size up here. If you like to buy 1000 shares, buy 250, keep your powder dry so that when we do pull back you can add to those positions that you love. I don’t relish swing trading full positions at all time highs. Small is fine, big isn’t.  Also, if you are having trouble sleeping, it probably means you have too  much exposure.

We are all emotional beasts and hate the idea of “missing out” so we always feel the need to have exposure. I am guilty too. The hardest thing to do is sell a little when the market is ripping higher because you don’t want the feeling of being left behind. It’s always good to feed the ducks a little when they’re quacking.

Until further notice, we will still play the long side.




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