Current Stock Market is a Very Difficult One to Be in
There are always the buy and hold (pray) investors who seem to obvious to the internal breadth of the stock market. This current period even though we seem to be knocking new highs with ease, I personally feel the current stock market is a very difficult one to be in.
My rational is based on the weakness of the Russell which declined 1.01%. This is the broad market. This is not the big cap Nasdaq with weightings in some of the glory leaders. If the broad market is weak, this is not a positive sign. More so add in the fact that many of the leading stocks in the leading sectors have been failing in their breakouts. This is not a positive. Most concerning however is the high number of distribution days. More so the clustering of them. High distribution days signal institutional selling. These institutional sellers are hedge funds, mutual funds and pensions. These are the experienced investors, not your cocktail party friends who seem to make money in every stock. Take into consideration of the age of the bull market and the extent of its run ( One of the oldest and biggest). I am not a bear nor is this another bearish stock market article. I am just following the market on a day to day basis…
This is a very difficult market to try to operate in and until there is a clear trend in one direction or another having a large cash position is a good idea. This is my personal opinion. If you would like to learn how to better your trading, I offer one on one private mentoring and tutoring.
Contact me @ Andrew@Trendfollowingmentor.com