Breadth was excellent yesterday as the market was able to follow through higher. Especially note worthy is the fact that the lagging small cap sector broke out on volume putting an exclamation point on the response to the Fed surprise liquidity injection.
Even better, the wall of worry remains firmly in tact as twice as many are pouring money into puts as they are calls.
This is a market that shouldn't be overanalyzed. Use the KISS principle here and keep it simple. Buy the dips and protect your gains. Rocket scientists are likely sitting on the sidelines afraid to buy this market.
Note: Since tomorrow is options expiration, we will take the day off. Use the volatility to get a good entry price on positions we recommended this week.
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