Well the market seems to have given a bit of a false move last week, with a sharp down day on the Tuesday on Greek rumours quickly being recovered, and now tonight we are seeing new highs on the Dow and S&P. Some critical levels from a psychological point of view have now been breached - Dow 13,000, DAX 7,000 and FTSE 6,000 is now also homing into view. The 2011 highs on the S&P have also been taken out.
Despite some positions being exited last Tuesday, my scans were still showing plenty more opportunities on the long side rather than the short side. This will no doubt be the pattern tomorrow for UK and European stocks. After the tight consolidation in the second half of February, and the 'fake out' move last week, it seems that the uptrend is back on track.
One thing this highlights (again) is that its not a good idea to plough into too many positions too quickly once a trend starts, because of these whipsaw or fake out movements in the general market. Been there, done that! I limit myself to opening one or maybe two new positions a day, to avoid this problem. If a sustained trend is going to develop, there will be plenty of time to enter new positions.