Summary for Week Ending 21st April 2007
Needless to say the market took off like a bandit this week culminating on Friday with yet another strong performance and we are clearly in new territory. What is of most concern however the the speed with which this advance has progressed, which is considerably faster that the trend that has come before this one. As such the pace is not sustainable, and the longer this pace of attack continues the swifter and more savage will be the comeuppance.
As always, the market is heading upwards, and I'm not one to stand in the way of a rampaging bull, and so, whilst the market is keen to rally strongly, I'm also keen to go along for the ride. Longs should be keeping the stops tight to preserve value.
The market has rallied 9% in 26 trading days and during the last trending movement this dimension took over 95 trading days, so that information puts the current run into some level of perspective. Its Fast ! and as such, is not sustainable. Look for consolidation this week, or baring that.. a break.
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