Market Direction

Market direction is one of the most influential factors in making progress in investors’ portfolios. The NASDAQ made a 52-week high this morning and is approaching all-time highs of 5132.50. By definition, the market is in an uptrend and investors should cautiously be looking to gain exposure by methodically wading into the market.

It’s important for investors to monitor current stocks breaking out and how they are holding up; this will give us valuable feedback on the strength or weakness of the market. Investors should be prepared for either move by keeping watch lists fresh and monitoring stocks that are showing exceptional relative strength in the best industry groups.

One additional way to find new leadership in the market is to screen for stocks that have exceptional fundamentals and are making 52-week highs on enormous volume. This would indicate that large institutions are putting more money to work in a ‘risk on’ environment.

As always, investors should interpret the current market actions by gauging the general market direction, leadership names in the market, and progress in their portfolios. To give us confidence in the market, we would like to see a green light on all three variables.

If you would like to discuss the current market action with a product coach please contact us at (800) 424-9033 or email us at

Happy hunting,
The MarketSmith Team