I checked the IBD (Investor’s Business Daily) site this evening to see if they were convinced one way or another that today’s rally was in fact a follow-through day. Interesting that they thought not. In fact, they provided a stat that really brought it home –
“Since 2000, three follow-throughs have come with a percentage gain of 1.3% or less. Two failed within a week, and the third saw a choppy 6% gain in the index over about 12 weeks.”
Otherwise stated, this follow-through day was weak, and chances are it won’t amount to much even if it continues higher.
So I am sticking to my plan – watch the dollar for a turn here at the 50 DMA or thereabout and keep the “sell the rips” mentality until proven wrong.
Today is the 1st official day of Summer, too (summer solstice). My guess is that we are at a tipping point and Uncle Ben’s testimony tomorrow might just get things kicked off. We’ll see.
Until then, let’s cruise…..
Trade the extremes always and have a good night!