The Breakout Is Just Beginning
The S&P500 extended it’s gains to all time highs out of the gate on Monday further establishing it’s credibility that this rally is for real.
We’ve covered a lot of ground in very short order, since the Brexit lows on Monday 6/27, just 10 trading days ago, we’ve rallied north of 7% in the SPY.
Most would suggest we’re overbought, and due to pullback, and in the short-term that may not be unreasonable, but for the intermediate and longer term time-frame traders, it’s this exact speed and surge higher that supports the bull breakout case.
Keep in mind, this is a monster range the S&P500 has been trading sideways in for quite some time.
If we really are in store for a multi-week to multi-month run higher then this initial leg will be extremely fast, give little back, and any short term weakness should be looked at as an opportunity to position long, not get short.
This chart of the cumulative advance-decline line continues to speak volume to me for the bigger picture bull case.
The portfolio members and I trade came into the week 95% long and we did lock in a small amount of those gains throughout today reducing our exposure slightly.
For the next 48 hours I’m running a sale on our memberships.
A 50% discount on the first month of our monthly membership $49 instead of $99.
A 30% discount on our annual membership for life $524 instead of $749.
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