The Goldilocks economy remains intact – not too hot, not too cold – keeping the long-term bull market alive. But we've gone from recession fears to optimism with the major indexes reaching all-time highs and sentiment readings approaching excessive bullishness. That shift leaves the markets vulnerable to a pullback. As sentiment cools off and rates remain stable, a pullback should be contained to 4-7% peak to trough and present a buying opportunity. If we should rally from here without a pullback and sentiment gets more bullish, I would use that as an opportunity to sell into strength and nail down profits, particularly on extended names.
@IBD_JNielsen hi Justin. Matt Hurley here. I have been a subscriber to IBD live for years and a big follower of yours. Do you like RDDT on today’s breakout?