Bulletin
Investor Alert

New York Markets Open in:

Lawrence G. McMillan

MarketWatch Options Trader Archives Subscribe

May 28, 2020, 12:21 p.m. EDT

Ride those long positions as long as the stock market remains in its strong upward trend

Just don’t get too complacent

By Lawrence G. McMillan, MarketWatch


Getty Images

The rally that began on March 20 continues to remain vibrant, especially after breaking out of the top end of the recent trading range. Acronyms like FOMO (Fear Of Missing Out) and TINA (There Is No Alternative) are rampant in media and financial write-ups now. There is almost a giddiness to the whole thing, with chart after chart showing heavy participation by first-term market participants (new accounts are opening at a rapid pace).

While this is fine as long as the upward momentum stays in place, and while there are no sell signals (none of our indicators has rolled over to a sell signal yet), we continue to feel that it is necessary to remain alert and not slip into some sort of complacency. As you’ll see in the Market Insight section, this bullishness could continue for a while and yet still succumb to a more negative outcome later on.

Link to MarketWatch's Slice.