Market grinds higher making new highs
Relentless is the word. This market is relentless in the pursuit of higher ground. Right after the President’s day SPX makes new highs at 1530. It is a tough tape. You cannot short it because it comes back and its hard taking longs because its filled with fear and caution. These markets can stay that way for a very long time and it can kill shorts who think the market is going to go down. There is still concerns that the market is extended. It may be so. Some of the stocks are still making higher highs or consolidating.
GOOG touched new highs at 800 and closed well above the 800 mark. The striking difference between GOOG and AAPL stocks -couldn’t be more harsh. While GOOG is making new highs and with great money flow, AAPL is sinking to lows and is almost half the price of GOOG. Once a market leader and the most heavily invested stock it has suffered under the new leadership of the company.
FB has regained its 50 day moving average and hence back into the hands of bulls. Its target is around 35 and we have to see how far this moves takes us. This stock was downgraded 5 times post earnings and lost all its gains. To see FB back above after a low on Feb 11 is bullish.
There are many stocks which are now consolidating and I will cover them in next addition.