(Still) Waiting For An Entry, Round 3
The S&P 500 index was up 13% from its February lows when it tagged the 1180 level on Thursday. That's a huge move without any significant correction on the way up. The small caps are up even more! It can be dangerous to try and chase big moves like this especially when the trading action this past week is suggesting the rally is almost out of steam.
This is not an environment to launch new long-term bullish positions. Corrections are a normal part of a healthy market. We need to be patient and wait for the market to provide an entry point.
I added three new candidates to the watch list this weekend so we will be ready when the correction finally shows up.