Broad Market Outlook
What an amazing reaction out of the market since the FED announcement where prior it seemed like we were headed for an extremely difficult year, a little chirp from Jerome and the market is 6% from a new all time high.
Now that everything seems great in the world again, you may start to feel green, or greedy. Especially if you missed out on some big trades this week such as CIVI that most seem to be involved in but rarely will it be possible for everyone to catch only the best trades.
If you missed CIVI, who cares, there will be plenty of others, just don't expect the next idea to magically do the same as CIVI on Monday morning because you want it to. Same for those who caught CIVI or insert your big winner from last week. That trade is only just beginning and trading it right is much easier then giving it away to start the process over again trying to find another.
As the SPY is less then 2% away from its prior pivot high (460), it can just as easily push through that area as some of the other sectors have pushed through there 200 days and/or prior pivot highs (Materials & Financials).
Or it could be met with resistance as there are only chasers left to bid the market after a 9% bounce off lows from 2 years ago. I am not saying, sell everything, get short and hope or expect us to break back into the range, but just be aware of the broad moves and what often follows after everyone joins the party.
It feels like the party is never going to end but eventually it does and we just want to be the first ones heading for the door with our cash in our hands.
If you have great stock from last week or the week prior, continue to hold your winner because who's to say how long this run can last, but if you missed some of the action or want to put on more risk to catch the easy ride because the trend has to continue on its current path. Those are often the times when there is far more risk then upside.
Amazing week from last week, lets stay focused and not get too greedy.