While our rally is growing old, there is plenty of life left. The term long in the tooth refers to horses and the fact that their gums recede as they grow older making their teeth look longer. Buyers can tell the age of the horse by looking at the length of their teeth. Investors do not have an easy indicator to determine when a rally is growing older other than by counting the days of gains. The Russell 2000 has been up 11 of the last 12 days. Since trees do not grow to the sky and rallies don't last forever, we would be justified in saying this rally has moved farther than anyone would expect without a material bout of profit taking. Up 11 of 12 days is asking for trouble. Fortunately, there have been a few rallies with streaks longer than that but very few. Historically, we would be justified in expecting a pause in the current growth spurt. That does not mean the rally is over, it would just be a pause to consolidate. Any trader currently long over the last three weeks is more than likely snugging up their stop losses every day. When a real bout of profit taking hits those stops will be hit and that will give us a new entry point for future longs.
New positions are only added on Wednesday and Saturday except in special circumstances.
NEW DIRECTIONAL CALL PLAYS
No New Bullish Plays
NEW DIRECTIONAL PUT PLAYS
No New Bearish Plays