Markets rallied handsomely to start a new week with all the major averages adding more than 1%, almost the exact opposite of the prior weekly start last Tuesday. It was interesting to see the spin many put on todays move, with the reason for todays robust move coming from easing fears over North Korea to Irma weakening. One just simply has to look at the charts to know that this is a bull market and that trends tend to stay in motion, much more than they are apt to reverse. The Nasdaq did complete its handle on a cup base and now sits just below it, the S&P 500 is closing in on the very round 2500 figure and the Dow did manage to CLOSE above the 9/1 doji candle Monday which was a third lower high in just a 3 week period beginning with 8/8. The Russell 2000 regained its 50 day SMA for the second time since 9/1 and with all that bullish venting, of course the most astute investors are always concerned more about how much they can lose and what could go wrong, while of course letting there winners run. And indexes can change on a dime, but big down moves normally take time normally a few weeks to months to top out, but one should be careful when things look their best. Looking at individual sector performance today it was the financials, materials and technology that showed the way. Leisure plays continue to act well and below is the chart of LVS and how it was viewed in our Friday 9/1 Game Plan. The stock has advanced nicely and now one can add to or initiate a position with a buy stop above a cup base trigger of 66.32.
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