It was a stellar week for the bulls. The market shook off its recent weakness with a barn-burning breakout to new all-time highs after the Fed Announcement on Wednesday at 2 PM. The long-awaited taper seemed to have something for everyone. The hawks were relieved to see the end of extraordinary measures by the Fed. The doves were relieved that the Fed thought the economy was good enough to take the foot off the gas pedal. Also, the Fed signaled they would stop using the unemployment rate of 7% to signal an end of extraordinarily low interest rates. That meant that rates would stay low for a good long time and stocks loved that.
All of this bullishness was good for my portfolio of course. The Ultimate Trading System did well and I had nice continuation gains in most of my positions most notably Mastercard (MA).
As it turns out, I'm not following the system strictly. For example, I took profits in CNBC just because I had a good gain in a short period of time and didn't want to give it back. Similarly, I continued to hold CELG despite triggering the range bands indicator to the downside and both of those appeared to be good moves in retrospect, at least for now.
I added new positions in Capitol One Financial (COF), Chipotle (CMG), Netflix (NFLX) and Nelnet (NNI). Of those, the only one breaking out to a new high was COF. The others were some recent favorites that I had traded out of recently and was able to reload at lower prices on the pop after the Fed Announcement. All of this sent my Tradestation account out to new all-time highs, which is no surprise in this environment.
Overall, things continue to move in a positive direction. The Santa Claus Rally has finally arrived and we'll join Santa for a glass of egg nog. Enjoy your weekend.
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