The S&P 500 was up again last week putting in the sixth positive week in a row. The last time it accomplished that was the last quarter of 2004. Once again we find the markets playing Santa Claus and giving every good trader their number 1 item on their list, a good rally. This rally is due for at least a breather to catch its breath, but until it shows some strong selling I don’t want to over think it – just play the trend.

One of the sectors that have caught my eye in this rally has been the Internets. They have shown leadership and strong accumulation over the last month and a half. 

Internet Stocks

Amazon.com (AMZN) has really found some sponsorship over the last few weeks. The volume has been increasing over the last week. Notice the last two trading days has seen a slight pullback. If Monday trading takes out the Friday high, I feel another leg up will be starting.

Amazon.com

Even though we are in the midst of one of the more impressive rallies in quite some time, remember the markets are still in sideways action. So take what the markets are willing to give and don’t over think the trades. Also on a short-term basis, we are overdue for a correction. Use your stops and protect your profits and principal.

Tom Incorvia is a swing trader with 18 years of experience in the financial markets.  E-mail him at tincorvia@gmail.com.