New High’s are coming in everywhere!!

Wow, it has been a long time coming and work in progress since March of 2000 and again in October 2007 when the S&P 500 hit its highs and then tumble into the abyss. The old closing high was $1561.80 and today we closed at $1563.23. Ok let me clarify something here. To me the closing price is the only thing that is important in my opinion. It makes my analysis work. If we hold above this new high for the next few trading days and no big hedge fund or mutual fund manager starts taking profits, this thing could really takeoff. Why do I think that? Well when the Small Cap broke it’s all time highs January 2, 2013, the Small Cap marched uphill with another 9% gain. 9% ! It is also what they call a vacuum because price has never been there before so there is no resistance.

Now don’t read this all the wrong way, because I do not make predictions, I just make observations and read past data on charts to make my current decisions. Today the S&P 500 made an all time high, so did the Small Cap, Dow 30, and Transportation. The Nasdaq made a new high that dates back to 2001, but not and all time high. This market is driven and I just do not see any real signs of slowing. What is a little scary is the fact that most retail investors, the little guys or you and I, are standing on the outside looking in. Here is another indicator that I use to get a feel of the markets, I’m 100% invested in individual stocks in my TD Ameritrade account. I have no money left, except for margin, to buy new positions. Nothing is getting stopped out.

Below from left to right are: S&P 500 – Small Cap – International. All have notes.

 

Ok, all this is wonderful news and we are making all time highs, but is there anything that is saying that maybe caution is warranted? Anything? Yes we are overbought on the daily charts and overbought on the weekly charts. This is just an indication that price could slow or pullback and it is not price telling us to get out. Every move I make and every decision I make is based on where closing price is at the end of the day. Did you read those words? No NEWS or TV Reporter, just price. Price!  I can’t say it enough, price is the only thing that tells you the truth everyday, every week, and every month. So read it.