Thursday, 7 March 2013

Uncharted territory

Go back a couple of posts and you will find this chart:

I noted that the high volume of trades was significant. I worried that it could signal the end of the line for the market movement. I was right. The flat period had come to an end. But I was wrong about the direction it would take. Part of my natural anxiety. I described it like this "my outlook on the market would appear to be hopeful but cautious." 

What happened next was this:

One day's increase in volume should never be ignored. As the market picked up my confidence picked up too and, as you know, I refilled my portfolio.

Long may this rally continue. We are now clear of the previous all time high and are in uncharted territory. There is no guide to where the next stopping point will be, based on the DOW. The S&P has some 35 points to go before it reaches its all time high so that's where we should be looking next.

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