Market Overview

Maybe We Just Continue The Melt Up

By Jeff Pierce

So I've been trimming out of some of my market etf's this week anticipating a pullback, but I've also been nibbling on a few positions throughout the week. So what does that say about me? I'm cautiously optimistic that the markets are going to go up, sideways, or any dip is going to be short lived.

My view on the market is we either keep going up or we're going to have a very fast and shallow pullback and then up. Both scenarios see us higher a month from now based on my current analysis. I wouldn't be short right now as there is just no reason to be based on the market's refusal to drop and it's too dangerous. I wouldn't be overly long as that isn't good reward to risk. I will say this: the longer we stay at these highs the greater the chances this just busts to the upside one of these days and starts another leg up. We had a chance today to break to the downside of the diamond pattern that was forming on the Dow, but it couldn't stick.

Check out the chart of the Nikkei below. When you compare it to our current Dow, the recent move higher doesn't seem so steep.

nikk

 

djia

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets Trading Ideas

 

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