This week, the market has cooled off a bit, so we are watching to see if this is a normal and healthy pullback that results in a good buying opportunity, or is it the beginning of a larger leg down to lower support levels. Time will tell. So far this year, technology and the very largest of companies have led the charge off of the bottom, with little participation from the vast majority of their index peers. Although this type of lopsided market participation is not sustainable for long, it can last a much longer than investors might anticipate.
Cannon AIQ example:
Below is a recent buy signal (Rockwell Automation) which we jumped on and has done very well so far. It's now a bit overbought, so we are watching to determine if it's simply consolidated it's recent gains before continuing it's rise, or about to rollover. Our plan most likely will be to take some of the profits and leave a bit of the trade on to see if it continues it's march up to the top range of it's up-channel, which would be ideal.