Day 135: S&P Breakout?
The Mother's Little Helper portfolio was up +0.75% today for a gain of +$5,228.36. Overall gain to date: +$114,946.69 (+19.69%). According to CNN Money the S&P 500 is up +7.18% Year To Date (http://money.cnn.com/data/markets/sandp/).
The markets appear poised for a break out, if you believe in things like technical analysis, charting, tea leaves, Fibonacci numbers, unicorn kisses and four leaf clovers. I don’t put a lot of stock into these things, I follow them just enough to be knowledgeable. For the record I do not enjoy unicorn kisses.
What I do believe is that emotion drives a lot of investing. For many, emotion is the rocket fuel that gets them to buy in at inflated prices, and emotion is the security blanket that gets them to sell out at basement lows. Emotion can also play a productive role in getting wise investors who have been on the sidelines to take decisive action in selected stocks. The S&P 500 has been flirting with a break out above 2400 for a while now and it ‘feels’ like investors ‘sentiment’ around this milestone number can be likened to a coiled spring. That emotion can be enough to propel the markets higher and even hold at higher levels until the data comes along that confirms investor sentiment. I’ve been projecting the S&P 500 will reach 2500 by year end, a breakout above 2400 by June would make that number attainable.
Disclosure: I am personally invested long in these stocks that appear in the MLH portfolio and may purchase or sell share withing the next 72 hours. I am also invested in other stocks that do not appear in the MLH portfolio: BA, BRK.B, CELG, CSCO, CTXS, CVX, DOW, DVAX, FB, IBM, NTES, NVDA, OMER, PFE, PG, RDHL, SCHW, THO, TWX, VEEV, VZ, XLNX, XOM
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article
This article is not intended to offer investing advice, guarantee 100% accurate predictions, or to be interpreted as providing a personal recommendation.