What a difference a week makes.
Last Friday (5/31) we talked about emotional (not rational) reactions.
I said the market sell off presents a big opportunity.
And it did. But I didn’t expect this.
The market rallied every day. And it seems like there’s no stopping it.
Compared to last Friday, we have the exact opposite conditions.
The S&P had its best week of the year. And the market could be gunning for 2,900.
But the market conditions are getting quite overbought. I don’t think there is much more fuel in the market’s tank.
And I think the market needs a pull back before it continues higher.
I have taken profits off the table and now I’m just watching.
Maybe the stock market continues higher, but I don’t think it’s a good idea to chase stocks higher into these overbought conditions.
The one sector that has underperformed is oil & gas. I’ll be watching these stocks next week.
S&P 500 has best week since November as jobs report fuels hopes of rate cut