Our confidence in this market environment has been further encouraged by the positive market action over these past several days. Today, the NASDAQ Composite joined the S&P 500 and the Dow Jones Industrial Average in making a new high since the previous market top in 2007-2008. Industry Group rotation looks much healthier. Technology groups like Telecom and Semiconductors are leading the way, while “defensive” groups like Utilities, Consumer Staples and Health Care are trailing. It is also promising to see a solid mix of new and old names from the MarketSmith Growth 250 forming and breaking out of constructive base patterns. Remember we are still in a volatile environment, so be careful not to chase and only buy out of sound base patterns. Hopefully, you find these facts encouraging as you overtake the psychological hurdles of investing in this late stage of the market. When you see stocks exhibiting signs of strength, please be sure to share them with your fellow MarketSmiths.

 

Best Returns,

Scott O’Neil
President, MarketSmith