Markets once again went out near their highs for the session, displaying very bullish traits. Both the Nasdaq and S&P 500 gained near .5%. Breakouts are beginning to emerge more frequently supporting the rally mode we are enjoying. Today we saw breakouts from DEO taking out a flat base trigger of 121.49, CVLT taking out a 79.64 flat base pivot, and CBOE just finishing above its 36.30 3 week tight trigger. Some others which took out triggers today on soft volume that will need volume confirmation shortly are SAP from a 83.74 flat base pivot, and CAM from a 66.24 flat base trigger. Natural gas stocks are starting to move again, with RRC, best in breed in beast mode. Keep an eye on SWN as well. Perhaps its a sign of victory for the fracking revolution. I get the sense as I talk to traders that many are still not convinced of the potential duration of this run. They are staying small, in cash, apprehensive to add any new capital at these “lofty” levels. I am apologetically among them. The gains have not been massive on this recent run: it seems somewhat slow and steady, with the exceptional one day explosive move. Gradually gaining momentum, almost teasing those on the sidelines itching to get back in.
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