Can it Continue?

The market indices moved higher this week. The Dow Jones Industrial Index gained 3.09 percent. The S&P 500 rose 2.28 percent, while the Nasdaq finished 4.23 percent higher.

So where do we go from here? There is all this chatter of “Green Shoots” coming from the mouths of the talking heads seen on CNBC and Bloomberg these days, and the market has rallied in anticipation of some sort of second half stabilization/recovery. What’s important to keep in mind is that this is most certainly priced into stocks at this point, and the Market is now going to need some “Growing Roots” to move forward from here.

Case and point was Friday market action where the markets look as if it was off to the races in the futures pit after the jobless number posted a much smaller than expected Job losses for the month of May., but most major indices reversed mid afternoon, and the sectors that had been leading this 6 week rally where actually the sectors that took us down. Divergent trade like this usually signals we are near a short term top/bottom, so be careful no to chase any rallies and buy the initial pullbacks or put your money on the line when your risk-reward is not very high at the current moment.

The NASDAQ and S&P weekly Candlestick Charts

Lets Review the Swing Trade Portfolio:

Here is what how the indices have performed year to date:

Index	Started Week	Ended Week	Change	% Change	YTD
DJIA	8500.33	8763.13	262.80	3.1	-0.2
Nasdaq	1774.33	1849.42	75.09	4.2	17.3
S&P 500	919.14	940.09	20.95	2.3	4.1
Russell 2000	501.58	530.36	28.78	5.7	6.2

Current Market Strategy…

Remember to be Patient. We be selective with our trades and hedge our portfolio as a whole with short positions.  Always be patient and remember, capital preservation our number #1 goal in these market conditions.  We will continue to look for selective trading opportunities split between our short trades, swing trades, and day trade investments.