Remember the story of the Tortoise and the Hare? Sure ya do. If not, get those lazy fingers to work and "google" it. It's a classic. And lately we have had the pleasure of seeing the Tortoise in action.
The Tortoise is here, in contrast to that zippy, crazy Hare that we had to endure last year. We had another nice, easy, boring week in the market. A good, solid, upward, boring week. The Bull keeps snorting and moving forward, pushing prices upward little by little in a sane and safe fashion. (If you can call being pushed by a snorting Bull safe). In contrast to the wild swings we were subjected to last year this slow advance forward should be a relief to everyone. Could this year be the Year of the Bunny? The Year of the Energizer Bunny? Yaaa-hooooooo!!
The Charts (illustrated below)
The DIA is looking good, moving up nicely without moving too fast. But as I mentioned before, the 130 level (13,000 DOW) will be a challenge and will most likely require several attempts before breaking out to the upside. Of course there is always the possibility that it will not be able to pierce 130 and will instead retreat to the downside. But for not the trend favors an upside breakout.
The SPY is similar shape, although it has has not made it's breakout move as the DIA has. So there is some work left to do here even though the trend is still up. It could take a few attempts to break thru this important resistance level. Assuming some consolidation here, look for a nice "pop and run" when it breaks out.
The QQQ's are moving rapidly upward, in part thanks to the parabolic move by Apple, which comprises a large chunk of this ETF. It NEEDS to rest, consolidate and even pull back a bit. It's over-heated and over-bought.
The last comment is about your holdings. Are the moving up? If not, are they paying you a good dividend? Are they worthy stocks to hold? Sometimes you need to cull the wheat from the chaff. Make sure you are looking at your portfolio on a regular basis, re-evaluating your holdings to make sure that are meeting your needs.
CURRENT MARKET TRENDS
Short Term (Daily Chart) – UP
Medium Term (3 day chart) – UP
Long Term (Weekly Chart) – UP
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