After a hesitant start the Railroad Track I identified on Monday certainly found its sweet spot yesterday with a powerful surge of 31 points on the S&P, 260 on the Dow, and closing near the day’s highs.
As I said right from the start, it wasn’t the best RRT setup we’d ever seen but it was still there and after a choppy couple of days the more adventurous traders were rewarded at the close on Tuesday and Wednesday, and now of course a rousing Thursday.
Among other stocks I’ve been mentioning recently, CMG and MNST still look promising, and the financial stocks have found their voice.
We still have plenty of earnings reports outstanding and do remember that around this time last year there was a nasty retracement – mainly due to profit taking and traders cashing in to pay their tax bills. As I mentioned in December it looks like that process is likely to have already taken place, but the next week will confirm if that is indeed the case.