Can This Rally Hold Without a Larger Pullback? Doubtful

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Our View

Since Israeli troops entered Gaza, the Nasdaq has closed higher eight sessions in a row for a total gain of 1,272 points or 9% — and its longest streak in two years. 

The tech-heavy index is now up 30% on the year. The ES and the YM have gained in seven straight sessions, pushing the S&P up 14% on the year. I called for the bounce, but I also didn’t think the markets would rally so much so fast without any real pullbacks. 

MSFT is at a multi-month high, Apple’s out of the graveyard, Nvidia’s up almost $70 or 17.8% from its low last Tuesday. 

All the big tech names are ripping and you know why? Because the low is in for bonds, yields are going to fall sharply and stocks are going to rally another 10% to 13% by the end of the year. Or at least, that seems to be the mindset right now. 

I was long the ES from the 4158 level and got out with a 65-point profit, and despite my scalp trades making money, I left a lot of money on the table. I had it and I didn’t hold.