Don't Let Go of the Tight Stops

With essentially no change in the markets over the last week, the suggested strategy remains the same: Hold speculative longs but maintain close protective stops. As the market tries to push higher and meets very difficult overhead supply, the trading ranges are very small. In fact, the range on Friday was the fourth-smallest, on a percentage basis, since at least 2000. Small trading ranges are an earmark of a market high, so staying long requires great vigilance. 

A further warning comes from the VIX. The second chart below shows the 10-day moving average. It is telling us of the lowest fear levels seen in many years. Sadly, the public is most complacent when they should be the most fearful and the most fearful when they should be the most bullish. There are times not to be a member of the consensus, and this looks as though it is one. ...170 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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