We’ve got the KBW bank index, the SOX, and the DJT-20 all breaking out, with transports leading the way to new highs. It’s hard not to be bullish with all indicators of a healthy market flashing green. I guess that was the pause that refreshes. Shame on anyone who thought the 200dma wouldn’t hold, like the 200dma of so many industrials (that are now completely disregarding their 200dma as they blow past it) like CAT, DE, and CMI. Here comes another V-shaped, low volume bounce.

Still, some cautious part of me, that has kept most of my portfolio safely in cash and out of the massive 5 day rally, sees some resistance at 420 on the SOX, which I think is more important than the KBW Bank index, which may go to 55 before it sees any major selling pressure. The transports are in blue sky territory. So we’ve got 2 out 3 that are sustainable.

If you’re not fully invested, as I’m sure most market participants aren’t, you can’t really be enjoying these past 5 days as much as someone that observes and doesn’t play. This market dishes out misery on the down days, and if you’re cautious, you won’t be enjoying the up days cause you’re not making as much money as the averages. My barbell strategy doesn’t allow me to fully participate in the excitement on days like the past week. But my portfolio, while underperforming the S&P this week, is still reaching new all time highs. I plan to keep it there.