Today we had another early morning gap reversal to the upside as the market simply refuses to lose any steam. The S&P 500 is now less than 2% off its 2011 high of 1370.58.
- Consumer credit soars $33 Billion, epic credit bubble collapse enroute? (ZeroHedge)
- Are we in the early stages of a great 1995 rally all over again? (StockCharts.com)
- Student loan debt on the rise, fueling jump in bankruptcies (IBD, Bloomberg)
The confident “everyone on board the market train” bias is starting to become very evident. With the mainstream media focused on the positive and average investors piling into the market there is almost always a top being formed behind the scenes.
The trend is your friend so by all means take advantage but perhaps proceed with care. Tighter stops on new positions for example is never a bad idea in these times as the market gives gains back much quicker than it adds them on.
Now more than ever, stay frosty (sharp) out there!