So far ALL the people who said the 2013 bull market had come too far too fast and was due for a deep correction had one thing in common, they were all wrong. While bulls and dip buyers were rewarded in the long term the perma bears were either in cash waiting for a pull back or shorting and losing money, unless they were very nimble with great timing. The big money and easy money this year has been in trend trading to the long side across many indexes and stocks. This will continue to be the case until something changes and it hasn’t changed yet.

  1.  Historically all time highs tend to go higher across different markets this is a place to be long, the odds are on the sides of the bulls.
  2. At all time highs the selling pressures of stop losses, trailing stops,  and resistance levels are removed, all you have is profit taking and exiting after price targets are reached. The bulls have the wind at their backs.
  3. $SPY just broke out of a 13 year consolidation zone to new all time highs. All sellers have been overcome for now and everyone now has a profit that has ever bought into the index at any time.
  4. The low of the day on break out Thursday held on Friday even after the non-farm payrolls miss. If it holds on bad news what happens on good news?
  5. People saying that the market is too high is an opinion, the fact that the market is trading at all time highs is a fact. Follow the money not the mouths.
  6. Being long puts you on the same side as the world’s central banks and politicians. It works until it doesn’t.
  7. We could be at the top of a cyclical bull market that is turning into the bottom of a new secular bull market. Breaking out to these price levels with the macro situation currently in place is no small feat.
  8. I see plenty of bears and non-believers in this bull market, this is the opposite of what 2000 and 2007 peaks were like. This market has had to climb a wall of worries for years.
  9. I personally do not consider the fact that buy and hold investors that use mutual funds are just now back to even after 13 years of no real capital appreciation returns is some wild and out of control bull market. 
  10. It is possible that the world is a bigger and better market now with the emergence of maturing economies like China and India that could lead to increasing earnings and share prices to new historical highs. The death of all time highs in equity indexes seems to have been greatly exaggerated since 2009, we have just crept higher through all the sky is falling rhetoric from every corner of the media.

My current holding major holding is in $SPY I am all in with a stop at the low of day on the Thursday break out, if we trend higher into new all time highs I will trail with the 5 day ema as a moving end of day stop. I am also long $FB calls and $AAPL calls, $TSLA is on watch for after earnings.



By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.