The major indexes pushed higher today as the Dow, Nasdaq, S&P 500, and NYSE all closed at a new 52-week-highs. The highs came with increased volume, but still below the 10MA.

While I may be skeptical of how sound this rally is, there is no denying that there is a rally nonetheless.

This is not the type of move that I would suggest buying on the breakout though. On the chart, you can see that buying at the breakouts would only net a small gain before the index corrected. If you follow a strict selling-trigger (i.e. sell at 5% loss), this would stop you out every time.

On the other hand, buying the dips is such a risky strategy here. I’m sure we can all relate to the idea that the dip we would buy on would be the dip that didn’t move higher.

This market is a nice combo of commissions and risk. I think I’ll sit out until we get a real trend.