- A surprisingly good show. The Dow was up only 62, less than 1% but the Russell and Transports advanced 2%+. The better showing of the mid-caps (Russell) is encouraging.
- The mid-caps will probably be the sweet spot if we are able to keep this going. The two mid-cap ETFs discussed on Jan. 2nd are both up. MDY, the S&P 400 and IWN, the Russell 2000 are both up 4%+.
- Volume was still a little light so conviction is only OK. But there have sure been some great, great moves in only three market days.
- Traders are now holding their breath. After such a move we should expect a pause, but that’s what I said yesterday.
- You will recall that I became intrigued by the action in Brazilian shares. I own PBR, the super huge oil company. And I recently subscribed to an interesting market letter written by Gary Dorsch who labels himself “Sir Charts Alot”. Wish I had thought of that. I won’t tell everything that Gary wrote this week but he made a great case for Brazil. And since I already have a leaning that way I will look for an entry point into EWZ. Here is Dorsch’s web site, should you think about signing up:Global Money Trends newsletter
- I have been adding quite a few stocks and, as they go up, added more to them. But I remain a nervous Nelly and have pretty tight stops. I don’t like to see a stock decline more than 7%. Others employ stops as much as 15%. That’s too much of a loss for me so I keep ’em tight. You may want to consider that.
It has been 70 degrees here all day, perfect. So I’m off for a walk and catch the last of the sun’s rays. Have a wonderful evening.
