Markets continued their march higher and again it was the leading Nasdaq behaving the best. It rose .7% with the S&P 500 gaining .45%. The Dow which we rarely discuss has gained 600 handles in its last 6 sessions and now has a good looking double bottom trigger of 18190. Of course when things look so rosy is when one should be on alert and a good time to remind everyone not to confuse brains with a bull market.. When complacency sets it thats when trouble often arises. That being said it is hard to ignore the tapes strength and the biotechs certainly gave the Nasdaq a nice nudge. The IBB rose 9 handles for a fresh all time high, and its a good example of why to let a trend play out. I have heard plenty how the names are overbought and due for a correction, which is true, but no one knows how long the trend will endure. PFE, a pharma play displayed nice relative strength last week up 3% and this week has tacked on another 2% thus far as well. Below is a chart from our Friday 6/19 Game Plan. Energy moved higher as well, and sector bulls must have been feeling blue waking up to an Iran deal which will flood more oil into the marketplace. No one knows exactly how much, but one has to be impressed by the days action. Earnings season is upon us once again and a couple financials reported this morning and both JPM and WFC were well received. FRC still remains my favorite in the group.
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