I can remember many times panicking over the market making new highs. I was thinking to myself, “the market can’t continue to climb higher,” “it is due for a pull-back.” In reality, the typical pull back was not until the market was much higher than when I originally had these thoughts. The best action, as usual, was no action at all. Rather it was to hold tight the long positions as more money poured in the ever increasing indexes. Call it fear of missing out; new highs increasing investor confidence; or pure momentum that increases your account’s bottom line if you hold your position(s).
On the macro, the percent of stocks trading above their 50 day average remained over 41% in an uptrend. The Chicago Fed’s National Financial Conditions Index remains favorable at -.58, unchanged for the week.