The markets continued higher again with a selloff at the end of the day (as expected). Bears are hastily becoming bulls but we have to start being careful as we are way overextended to the upside. The skittish investors can turn bearish quickly. They are now greedy and piling up into worthless stocks like Carvana (CVNA) or Bath and Beyond (BBBY) and when the mood changes, they will get burned and sell everything again. We are definitely now in stage #2 of the trend.
The Ichimoku chart is very bullish and extends to the upside. We need to watch it carefully for any changes in the chart to unload our trades. Until then we can stay bullish.
My expectation for tomorrow is bullish. I think investors will continue piling into stocks, so Friday will end up higher. There is no news that could turn it down, and with no news, the market tends to go higher. Expect a strong rally tomorrow.
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