Sunday, May 05, 2013

New Stock Market Highs

The stock market reached new highs at the Dow crossed 15,000 intraday for the first time and the S&P closed above 1,600 for the first time.  This rally continues to be the most unloved stock market advance, as investors are not celebrating.   It has been reported that the new highs probably resulted from significant short covering on Friday.

I am one of the investors that is not celebrating.  Although our portfolios have benefited from 2013 market advance, I continue to be cautious by selling into the rally and taking profits.   I strongly believe there will soon be an opportunity to by a lower prices.

Of course, the coming correction is the most anticipated ever.  The market has gone six months without a 5% correction, when the average is five in a year.   2013 will be only the third time the stock market has gone from January 1 to May 1 without a 5% correction.  One pundit claimed that other two times ended badly without providing specifics and I haven't found the supporting data for the claim.

This week will be interesting, especially if the market continues to advance.
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This is not financial or investing advice. Please consult a professional advisor.

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