Edit June 30th, 2012: I’ve created a new page titled “Breadth Indicators.” It lists just about everything I track with charts showing when these things give either overbought or oversold readings. Most of the charts are from this past Friday and you can easily see that many of these breadth indicators have pushed deep into overbought territory. Just click on the tab above this post.
Out of TNA at 53.22 for a 10.4% profit, less commissions. Just too much profit to walk away from especially in less than 24hrs.
60min chart of IWM showing that the RSI has climbed above 70 and that it is extremely overbought as of time of posting. This is a special situation so IWM and the market could certainly climb higher into the close. Also note that I’ve drawn in a fairly large and purely speculative rising price channel on the chart. Could be legitimate or pure fantasy.
Have a great 4th of July. Next week will doubtless see light volume as the holiday is in the middle of the week. Light volume, pre-holiday trading often favors the upside so there may be a few more points in this particular rally leg. Then we will be looking at earnings and while I’m certain they will be “better than expected,” they may not be all that good, regardless of the spin. Probably going to be very volatile market once earnings start to hit and then through the rest of July.
Be careful. This is a trader’s market. Buy-n-hold is B.S. And never forget that just because you’re paranoid doesn’t mean that somebody isn’t out to take all your $$.
Now get to work on that tan and GL in the week ahead.