In case you missed it, here’s a summary of the ETF topics and market reviews I posted to my blog during the week ending on 1/20/2013.
Despite option expiration day last Friday, trading did not show much volatility for the first few days until the S&P 500 broke out to the upside and ended up gaining about 1% for the week.
The theme continued to be the same as intraday pullbacks were minor and afternoon lift-a-thons a given. We are now in a trading environment where it has almost become impossible to look for a pullback to add new positions as temporary ‘down periods’ last only minutes before the markets are being pushed up again.
Nothing goes up forever, and this market will not be an exception. We may very well be heading further into bubble territory, but reality has to to set in sooner or later.
If you are participating in this rally, be sure to have your exit strategy in place, because the exit doors will get crowded in a hurry once the rush starts. Again, while the timing of it is unknown, you need to be prepared.
Over past week, we covered the following: