Imagine waking up and discovering you are 1.3% richer in one day before breakfast. 303 points in the Dow, 32 points in the SPX — how much of this is due to Trump and how much to the technical structure of the market. Of course there is no way to know definitively–that is the nature of the market. Some of the jungle drums are attributing today’s rocket to paniced short covering. A very likely hypothesis. Anyway unless you were already long you would have been chasing the train down the tracks
We have been talking about this PnF chart and about buying signals for several weeks. (Here a target of 2639 in the PnF chat.) In addition the last week of January we pointed out the breakout from the flag(?) rectangle (?) and its implications. At any rate today is a rousing buy signal.
But isn’t this just a one day phenomenon? Like the breakout Jan 26. Probably not, but time will tell, just as it told in the case of the apparently subtle breakout. If the market folllows up we will be adding on to our position.