Thursday, April 8, 2010

Market's Continued Strength & Reason for Systems

The stock market has continued to march higher, with many analysts becoming increasingly worried. I have also worried a bit, as the market has moved relentlessly higher. On one hand, I chalked up the rally to the "wall of worry" that we sometimes discuss -- as a contrarian indicator. On the other hand, friends and associates have pointed out how the market rallied for X days in a row; or something like 95% of the last Y days.

This is one of the main reasons why traders like to use trading systems: discipline.

Our long-term indicators remain strongly bullish. Our overbought/oversold indicators have flipped between slightly bearish to slightly bullish and are currently neutral. As a result we have been Long -- and remain Long -- in this market.


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