Groundhog Day

It feels like we are repeating ourselves over and over again. The market put in a solid rally today. Better-than-expected earnings reports from corporate bellwethers helped push stocks to their fourth day of gains on Wednesday. However, Intel Corp. and JP Morgan Chase both fell by more than a percent despite announcing double-digit gains in profits. The Dow is up 2.9 percent in October, and closed Wednesday at its highest level since May 3. The Dow has been up for 22 of the 31 trading days since the end of August. Does the SPY chart below look bearish? Why fight the trend? Our team and our subscribers have made a great deal of money lately and we will continue to do so by following our charts and placing our stops accordingly. Are we saying this to pat ourselves on the back and tell you our software is superior to any methodology out there? No. We are merely saying, no matter what approach you use to trade the markets, we really hope you caught a large part of this move and banked some nice coin. If not, we really urge you to rethink your strategy as the market has presented some unbelievable money making opportunities. As far as predictions of a market top go (which we hear everyday now), eventually someone will be right. But we will be ready to ring the register as our trailing stops will be profitably hit and we will move on to the next profitable trade.