Top 10 List for a Bull Market

There is a big difference between trading in an up trending market and a down trending market. Money can be made in bull markets and bear markets but you have to be trading the right way to capture those profits.

Here are the ten best signs that we are in a baby bull market:

  1. The major market indexes are above both the 50 and 200 simple moving averages. Check.
  2. You have many growth stocks trading at all-time highs, AAPL, CMG, and ISRG. Check.
  3. You can safely buy on any price retracements that bounce off key moving averages. Check.
  4. Traders and investors are surprised that the market is rallying regardless of  macro worries. Weird.
  5. Bad news hits the market but the market goes up, because it is already priced in. Europe downgrades had no effect.
  6. Higher risk assets start a strong uptrend with safe money coming out of bonds and the cash and are used to purchase market leaders. It appears so.
  7. New leaders emerge out of strong bases while defensive stocks under perform. Yes.
  8. Can Slim traders find huge amounts of set ups to choose from. That is what I am hearing.
  9. Fear of missing out on the rally replaces the fear of losing money on sudden drops. I am there.
  10. The majority of traders do not believe the rally is real. Hmmmm.