Advancers beat decliners and the breadth of sectors performing well has started to broaden out. At the end of the first quarter, we had to look hard to find stocks that ended the quarter up. Yet, three weeks later, many seem to have forgotten that. Since then, we have only seen improvement. On the surface, a sigh of relief allows optimism to penetrate.
Traders are like junkies.
Give us the wind to our backs, crossovers and up sloping moving averages, high volume on up days, low volume on down days, all sectors benefiting with advancers beating decliners day after day, and we quickly forget how much money we've recently lost. However, experience tells me we should be cautious here and not let our enthusiasm blind us. That would just make life so much easier. Perhaps I am jaded. Or perhaps the contrarian in me remembers the damage following the last surprise rate cut in January.