Ike:
Good day! The last few days, I have seen numerous posts on SI claiming we are overbought and some say (Favors) this only a bear market rally!
While I agree to an extent that we are slightly overbought, and could retrace or consolidate for a period, doesn't this all seem to be purely microanalysis on their part? It puzzles me how so many continue to fight this bull with all their might.
The last few weeks have demonstrated considerable improvement in breadth, new highs, and brought about a market of many leaders! My point being, if one had taken your lead, and entered properly, any short-term retracement could be used as a buying opportunity? I should point out violation of the key supports you've listed would mean all bets are off.
Perhaps the biggest cause of these deviations is one's definition of time. Two people could quabble over any hypothesis if their time frame was unalike! Your writing leads me to believe you trade trends, and time is not a key factor in your decisions. So if my assumption is correct, short-term fluctuations mean little to your decision making as long as the trend remains intact. Is this premise correct, or have I misinterpreted your teachings?
It's easy for others to question your hypothesis when short-term trend loses steam. However, my point in all this is that the ship has set sail, and big money has been made. Incremental movements, with the bigger picture intact, pose little risk to the gains that have been already been captured! As always, thanks for your insights and your contributions to this thread! I'll be "dancing in the streets" this weekend, and hope your doing the same!
Regards,
Kevin |
