The next mile is the only one a person really has to make.One of the easiest ways to find yourself out of step with the market is to look too far down the road. We can always make a good argument for why things are bound to eventually change, but it seldom pays to argue with what is presently happening in front of us. The market has a tendency to trend, and those trends don't end easily or logically. Most often, they will persist far longer than we think are reasonable and they will reverse only when few are prepared for it. The present rally, which kicked off a couple weeks ago on earnings from Goldman Sachs ( GS) and Intel ( INTC) is a particularly good example of a trend. It has already gone much further than most would have predicted and has been astonishing in its persistence and lack of pullbacks. For many, including me, the breathless excitement in the market seems out of step with the much more sober views on Main Street. While Wall Street is celebrating the deceleration or our economic meltdown, many ordinary folks are still very concerned about unemployment, real estate prices and the pace of any recovery. Bur our job as traders isn't to worry too much about how realistic the market might be but rather to embrace what is happening now and try to profit form it. What is happening now is a tremendously strong rally that has many folks scrambling to find a way to enter this market. They aren't seeing any meaningful pullbacks, so they are paying up and chasing stocks that, in many cases, are already extended. How much further will this extended market run before we have a meaningful correction? I have no idea, and I'm not going to try to anticipate it. I'll simply accept the fact that we have a strong market and try not to question it.
-- Danish fur trapper's expression