Time to take some profits - MarketWatch

Time to take some profits - MarketWatch: "The latest problem is just starting to surface. Interest rates are creeping higher right across the board. Whether you look at the short or long end of the curve, bonds are heading lower and rates higher. So far the equity markets are doing what they have done with all other potential problems — they have simply turned a blind eye to the issue."
What was the effect on the U.S. markets? We didn't even blink. Determined markets sometimes ignore potential problems and this market is quite determined to hit the near term range breakout projections and maybe even those longer term ones that seemed outrageous six weeks ago.

Sometimes momentum trumps everything and right now it sure feels that way. That momentum, when this strong, can make all investors and traders simply throw in the towel and buy, buy, buy. Right now it sure feels that way doesn't it? It engenders a "nothing matters" and the "market will rise forever" kind of an attitude.

When the trend is this strong you do defer to it but you don't accept the notion that what goes up will never come back down and will simply go up infinitely.

You keep looking for storm clouds and potential problems. Rising rates is simply the latest in a string of issues. If bonds do continue to break down, they have the potential to bring this advance to an abrupt stop. Combine that with the fact that the meat of the advance towards those eye-popping projections is nearing an end and you have to come to the conclusion that it might be time to pull in the horns; tighten up the stops and make some stretch sales into strength. After that we can reassess and decide where the next opportunity lies.

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