Power bar to new high…bad country for bears…

Posted on Jul 12, 2013 by in Letters

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=9&dy=0&id=p20049953156&a=214966864

Often it is not just what happens, but how it happens.  Yesterday prices powered up on a distinctive power bar to close at a new high.  New highs make many investors nervous -- and afraid to buy or increase their commitments.  But pros know that prices at new highs represent prices with no defined resistance overhead.  We are great believers in adding on to commitments.  In long trends it hypos performance, and is IN FACT the least risky time to be all in.  The probability of loss is reduced when you ride with the long trend.  MPT (cooked up in an academic lab) didn't (and doesn't) know anything about trend analysis.

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