Special Risk Capital Management LLC

Market Continuing Higher April 6, 2019

April 5, 2019 – The train keeps rolling down the track.  While there is “excessive” optimism from many sources you just can’t ignore the steady drive higher.  We’re now fairly close to the previous high set back in September and that 8107 level (green dashed line) is now our next point of possible Resistance.
The 7777 level (red dashed line) is a point of possible Support.  Market Sentiment, Money & Volume Flow and Price Strength indicators are all Bullish.  This week the bullishness was fueled by China trade hopes, strong employment data and Trump seemingly backing down from shutting down the boarder with Mexico.  (Editorial:  Interesting how someone can create a problem, then “solve it” by not following through, and ask for “credit”.)

Overall the pie charts of the percent of stocks in the S&P 1500 Index (below) are very bullish as well.

Price Strength – Accumulation / Distribution –There is a fair amount of green in those charts, supporting the bullishness of this market.

The table below shows where the short term strength is in this market:

Let’s not get overwhelmed by this strength but rather continue to move with it and adjust positions as it matures.  Stocks and those sectors inevitably change and rotate, and so should we.  China, for example, was going sideways just a week ago.

Have a good week.      ………..  Tom  ………..

Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.