Dow at 2 Year High

The Dow Jones Industrial Average is teasing a 2 year high yet we see lots of sluggishness. A decisive breakout to the upside would certainly be welcome. Looking at the indexes reveal painful gains as we move higher. At the same time many of the leading stocks have retreated back to their 50 day moving averages. The answer to the next move as always will lie with what the leading stocks are going to do. Some of the leading stocks have broken down this last two weeks but others are going through a healthy consolidation.

Most of my followers should be close to be 100% invested by now and perhaps in the last two weeks may have fallen back a little as some stops got hit. At the same time if you have seen opportunities to add to positions then by all means do so. In a market such as this you have to trim the losers and add to the winners. As we continue to move sideways we will hopefully see new stocks setting up for potential breakouts later. Those stocks will be the ones that have refused to go down and are setting up for the next rise.

A number of my readers have been asking for more regular updates. To comment on the market on a daily basis is for day traders only however I can understand the need for more information. For this reason I will start giving short concise comments on a more regular basis at http://twitter.com/rmhs my link is also on the left. Additionally I will continue to comment here as and when I consider necessary.