Momentum on bullish side dies a slow death

The market was flat yesterday, if you look at the market averages. However on the market monitor we see 132:57 breakout ratio. So buyers are active in the market. The weakness is in stocks which had run up a lot and in stock with individual news. Market is soon going to turn its attention to earnings and pre earning warnings or announcements.

The market on all parameters is showing steadily improving breadth. It is a bull market. It is having minor dip. But the trend is firmly bullish. If the market spend 3-7 days at around 100 breakouts on upside with occasional down day, it will set it up nicely for a next up leg. Market do not oblige us that way, but if we see 50% plus going down to around or below 10, it will indicate the overextended stocks are cooling down.

Everything in Market Monitor shows a healthy and solid bull market. Remember market momentum on bullish side dies a slow death. Tops take a long time to form once momentum starts building. So any turn in market is not going to be sudden. It will show up first in the Market Monitor numbers first.

In all the methods highlighted under Methods and Philosophy, currently there are more opportunities than most traders can handle. Key task is to prioritize the opportunities. To be bullish in bull market is right strategy till the market signals otherwise.