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<blockquote data-quote="Dallas Winston" data-source="post: 901269" data-attributes="member: 7168">nasdaq still coming out of long consolidation….it's forming a bit of a handle if you will:<img src="http://stockcharts.com/c-sc/sc?s=%24COMPQ&amp;p=D&amp;b=5&amp;g=0&amp;i=0&amp;r=1479843382352" alt="" class="fr-fic fr-dii fr-draggable " style="" />Dow has broken out…<img src="http://stockcharts.com/c-sc/sc?s=%24INDU&amp;p=D&amp;b=5&amp;g=0&amp;i=t40012854917&amp;r=1479843422688" alt="" class="fr-fic fr-dii fr-draggable " style="" />Small caps had been basing out (pretty much flatlining) all the way back to 2014:<img src="http://stockcharts.com/c-sc/sc?s=IWN&amp;p=W&amp;b=5&amp;g=0&amp;i=t32308947254&amp;r=1479843522964" alt="" class="fr-fic fr-dii fr-draggable " style="" />Now,as you can see, they've been breaking out and running. Relative strength is breaking out…in small cap stocks.My model (for myself and clients) has been on a full buy signal since mid- November.&nbsp; We were on a partial buy (partially invested) before then.The indexes are obviously doing well, but this is becoming more and more of a stock pickers market.&nbsp; That is, stocks here and there are breaking out and running, and some of the indexes have yet to breakout.&nbsp; I think this will continue for some time.Russell 2000 (small caps running) is a good sign of strength.&nbsp; This is a potential lock out rally, meaning those that are waiting for pullbacks won't really get them and the stocks will keep running.&nbsp; The key, if you're a stock picker, is to find stocks that haven't broken out yet, determine good entry points, and pick them off as they emerge from sound technical patterns.&nbsp; The market maybe a little ahead of itself, but I’m not expecting huge pullbacks, maybe in the range of 2 % or so.&nbsp; The conditions for a bear market are:Rapid inflationBig deflationinverted yield curve, fed tighteningovervaluation…high PE ratioThe only thing at risk right now is fed tightening.&nbsp; Futures are showing a strong likelihood of fed tightening ( rising rates ) at the December Fed meeting.Recently the 10 year bond took a big hump in yield from 1.8 to 2.35%To summarize:*Market possibly a bit extended, but not expecting a big pullback.*This could be a 'lockout' rally*Remain disciplined*Wait for sound entry points..if you’re a technical trader.Stocks in constructive, potentially buyable patterns:YELPZBERY</blockquote>

[QUOTE="Dallas Winston, post: 901269, member: 7168"] nasdaq still coming out of long consolidation….it's forming a bit of a handle if you will: [img]http://stockcharts.com/c-sc/sc?s=%24COMPQ&p=D&b=5&g=0&i=0&r=1479843382352[/img] Dow has broken out… [img]http://stockcharts.com/c-sc/sc?s=%24INDU&p=D&b=5&g=0&i=t40012854917&r=1479843422688[/img] Small caps had been basing out (pretty much flatlining) all the way back to 2014: [img]http://stockcharts.com/c-sc/sc?s=IWN&p=W&b=5&g=0&i=t32308947254&r=1479843522964[/img] Now,as you can see, they've been breaking out and running. Relative strength is breaking out…in small cap stocks. My model (for myself and clients) has been on a full buy signal since mid- November. We were on a partial buy (partially invested) before then. The indexes are obviously doing well, but this is becoming more and more of a stock pickers market. That is, stocks here and there are breaking out and running, and some of the indexes have yet to breakout. I think this will continue for some time. Russell 2000 (small caps running) is a good sign of strength. This is a potential lock out rally, meaning those that are waiting for pullbacks won't really get them and the stocks will keep running. The key, if you're a stock picker, is to find stocks that haven't broken out yet, determine good entry points, and pick them off as they emerge from sound technical patterns. The market maybe a little ahead of itself, but I’m not expecting huge pullbacks, maybe in the range of 2 % or so. The conditions for a bear market are: Rapid inflation Big deflation inverted yield curve, fed tightening overvaluation…high PE ratio The only thing at risk right now is fed tightening. Futures are showing a strong likelihood of fed tightening ( rising rates ) at the December Fed meeting. Recently the 10 year bond took a big hump in yield from 1.8 to 2.35% To summarize: *Market possibly a bit extended, but not expecting a big pullback. *This could be a 'lockout' rally *Remain disciplined *Wait for sound entry points..if you’re a technical trader. [u]Stocks in constructive, potentially buyable patterns: [/u] YELP Z BERY [/QUOTE]

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