Complete Monday Game Plan 10/14/13

Markets had a roller coaster week with the S&P 500 leading the way .75% gain for the week. The Nasdaq LOST .4% this week but in a very wide range with 141 handles between the high and low. In a mysteriously fashion volume was only about average on a daily basis. One thing for sure is that volatility is closely associated with market tops. The Nasdaq is still leading the way and lies just 1% off its 52 week high, and still boasting a 2013 gain of 25.6%. The S&P 500 is only 1.5% from its recent 52 week high and is up a respectful 19.4% YTD. In a mixed fashion the S&P 500 kept its posture of higher highs and higher lows in effect this year and a move above 1730 keeps that train moving right along. The benchmark is also heading right into that 1710 false breakout on 9/18. Was the 4.5% sell off we experienced since mid September enough of a rest? Interestingly on a sentiment basis just reading through my finance literature I see a large amount of pessimism in the air. “Are Stocks Topping Out”?, “A Stock Market bubble still in the Cards”, “Equities are grinding lower”. Healthy amounts of negativity are the fuel that can keep a bull market going. This bull market almost turning 5 years old could be getting a little long in the tooth. Typically they tend to last between 2-3 years, although some have stretched out much longer. Another possible indication that we may be due for a correction is the current pace of IPOs this year. In October alone we have had 13 come to market already with PBPB BURL RMAX perhaps the best known. They all have had very positive reactions thus far as well. As always let price be your ultimate guide in entering positions and let the secondary indicators help your formulate your thesis.