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The market this week

As of last Friday, the Dow was up 19 out of 21 days. Quite a run. Great earnings mostly from MSFT and AMZN pushed us to new historical highs. The question is now what?

The key we will be watching here is the volume on the pull back we should be getting soon (you remember down days don’t you?  LOL). If the volume on the pull back is light, look out to the upside.

If we finally get some distribution days, the down side could get ugly, there is obviously quite a bit of retail money  long up here. There would be a ton of long and wrong, late to the party participants. That being said, we will have scenarios for trades on both sides in either case. No guessing, just mapping out scenarios and letting the market unfold.

Not too hard to find something to go long up here, but what if we get those distribution days? Will you be prepared? Take inventory of sectors that are weak while the market is making new highs. One such sector are the REIT stocks. AIV, ASN, AVB, EQR

Categories: Market Set Up
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