The market just seems to want to move up.
This week we saw the market close up 78 points, but once again most of the growth is due to the top twenty shares.
Investors are not moving into the small or mid caps, which were both flat this week.
We remain cautious on the market with good reason, hedge funds are still net sellers for the second week in a row while the private or retail investors are the net buyers for the eighth week in a row.
We also note that the volume is still very low across the market and that the futures are discounted to the ASX 200. This indicates to us that the professional investors think that the market has run as high as it can go and it is only the physical market pushing it higher.
We can never predict exactly when the market will pull back.
We can however advise when you need to be cautious.
At this point in the market I am not chasing the ASX 20 companies especially the banks and mining, I will look to buy these at lower prices.
There is still plenty of good opportunity in the market with NABHA being an opportunity for investors who are looking for income and potential upside in the price.
These markets suit long-term investors.
If you are a trader be very careful.