Take a Chance on S&P 500, Since Weak Volume Can Still Work
"Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell. If you want to have a better performance than the crowd, you must do things differently from the crowd." -- Sir John Templeton
NEW YORK (TheStreet) -- Today was another slow day for markets, as traders trickle back after a long weekend. September isn't usually the best month of the year, but neither is August -- and August was fantastic.
Leading stocks remain strong and are building nice continuation patterns, like bull flags, or are continuing to move higher. We are still seeing relatively low volume in markets, but the leading stocks are seeing good volume at key points.
There are a lot of people complaining about the low volume -- and that is only because they are missing out on this rally.Read More: Goldman Sachs' 50 Stocks That Matter Most to Hedge Funds Not everything is perfect every time. Being able to ride a trend, even while not perfect, is what makes money. Stops are to keep from being hurt. But I'll try a breakout or chart pattern any day of the week even while not all the factors are there to indicate an ideal trade. Being wrong is part of trading. But you can't win without taking a chance, and sometimes you can't have everything just perfect. You can't always have your cake and eat it too, although it sure is nice when it happens. Gold (GLD) and silver (SLV) remain very weak, as I've said was the most likely scenario for some time now. They still have more downside ahead. Read More: 5 Ways to Hike Your IRA Contributions The S&P 500 SPDR ETF (SPY) is still building a very nice bull flag and can pop at any time now. $201 is a buy point. But I am more focused on individual stocks, since they are showing me better action and moving much quicker. At the time of publication, the author held no positions in any of the stocks mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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