Market Outlook
After spending most of the week forming a mickey mouse flag above ATHs, the S&P did what most are hating on. Breaking out to new highs, yet again. The Nasdaq names have been on even more fire, while the mega cap Dow 30 names are still trying to play catch up.
Now we can thank most of these vertical climbs in the major indexes due to the rally in FAANG and major Semi names like NVDA retesting ATHs. If you held onto any of those names over the past two weeks, it felt like Christmas morning day after day.
When major markets take out new all time highs, as they have shown us last week, more often then not, with enough time, the market tends to continue on the path of least resistance which is higher. The idea's of new lows are for the hopeful bears who are still waiting for the crash back to 2008 lows, that will never happen.
This market has been no walk in the park this year on either side of the coin, we had a paint drying first half of the year and now this out of left field vertical climb that feels difficult to hold onto. This is where remembering some of the simple rules we always use, makes these decisions more rational and than emotional. 
For myself, this past week I closed out my position in INTC after a 200% climb since August. Only for it to climb another 30% after earnings. Sure, it is easy to say, I should have held but the decision was made and I have no regrets. For some of you that are still in major winners in the tech space, these vertical climbs will continue until they don't. When they don't, the start of that shift will be taking out their current low of day.
For names like ARM or AMD that had back to back 10% days most of last week, they most likely will still push higher after you get out. Just like INTC did for me, but we have to remember we are not in the game of catching lows and selling tops. We are in the game of finding tight risk entries and holding for as much of the meat of the move as possible.
The squeeze and bust of CAR is a great example and reminder as to why we follow these simple rules.
CAR respected the LOD trail during a $700 a share increase in price. Yet once it broke that rule, it gave back nearly the entire move in 2 trading days. This is the most extreme example possible but a reminder as to why we want to raise our stops instead of capping our upside.
As the market continues to rally, most people without rules, will start to make emotionally decisions that they often regret later after the price action fades. This is not the time to "try something different." Their are plently of set ups now, compared to a month ago and as always we just need to continue to scan and share idea's daily.
The wall of worry is back in full effect as to when the market will top out again, yet the markets climb on worry and falls on hope. Continue to find those tight right set ups and if you need a second opinion on something, post it in the group or shoot me a message if you prefer to keep it private.
Lastly, congrats to all that are still fully invested in the Big Picture Model, you survived another market correction, where the gift was new record highs for your account.
From Bennett
Founder Big Picture Trading
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Macro Rotation Outlook
SPY
Dow Jones
Nasdaq
Mid Caps
Small Caps
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Sector Rotation
Sensitive - sectors that have moderate correlations to overall market conditions.
Tech
Energy
Industrial
Telecom
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Cyclical - sectors that are more sensitive overall market conditions.
Materials
Consumer Discretionary
Financials
REIT
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Defensive - sectors that tend to outperforming during sub par market conditions.
Consumer Staples
Healthcare
Bio Tech
Utilities
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Big Picture Set Up's
AMD
ARM
ASML
COGT
CYTK
JPM
LIN
META
NFLX
ORLY
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