Market uptrend still intact
The market’s strong performance last week has left little doubt that the intermediate-term uptrend that began over two months ago remains intact. And this is reflected in the now once again all-green trend picture of all the major market indices.
And for the first time during this move – and following the lead of the broader indices – the Dow Jones Industrials on Friday achieved a new multi-year closing high (and is only a mere fraction of a percentage point away from its 11,027.20 intra-day high made last March). With all of this positive action, it’s appropriate to begin asking how far and/or how much longer this uptrend might have to go, and this coming week’s action should offer some clues.
In the meantime, I initiated another new position last week when I sold some January 30 puts on Tribune Co. (TRB), one of the stocks on my watchlist. Next week I’ll be looking to start selling February options on some other candidates – in particular, some food stocks (like Fresh Del Monte (FDP) and Kraft (KFT)) are currently looking interesting.
