Morning comments

The market is in a crazy mode, that's the time to make very easy money for traders. That’s when the market gets bought up despite prior gains and all logic and when you’re literally amazed at the bulls’ ability to keep pushing prices higher. We need to remember these for the next bull as well!

For people who doubt technical analysis, I can’t think of a better persuasive argument. If you trade/invest off the fundamentals, you would have never been long off the March low and you certainly wouldn’t have gone long in the past week as literally dozens of stocks broke out and rallied. But technical analysts don’t study what should happen but what is happening. We covered our shorts within one day of the March low and went long one day after and have basically stay long or maintained our long bias ever since. We were able to do this for only one reason. It’s because the charts told us to maintain a long bias. Simple as that. The trend was up and there were no warning signs offered yet.

We must also be aware of a possible ‘buy the rumor, sell the news’ scenario.