Big Day In The Market - another puzzle piece in place

Today was a brilliant day for the longs and we have lots of them. New highs were registered in the Dow Industrials (all time), the NASDAQ (5+yrs), the S&P 500 (nearly 6 yrs), and the Russell 2000 (all time). These new highs tell us that big money is pouring into the market with enough intensity to push prices to levels not seen in years or, in some cases, ever. There are many who feel that new highs are unsustainable and should be sold, others believe new highs confirm strength and should be bought. It always takes some time to find out who's right but history says that new highs after a period of consolidation are a bullish indicator. (Of course, the very last new high is the worst one to buy but I believe that perspective is wrong today.) Consider also that volume is above average but not heavy, another good sign. New highs also continue to trounce new lows, another good indicator of the market's health. The fact that the Dow Transports and Utilities did not make new highs is not a major concern TODAY but they must come on board over the next few weeks to confirm. We'll revisit this point next week.
An analysis of investment by sector in the stock market suggests that the average investors are meaningfully underweight information technology and financials but still overweight energy. I believe it's reasonable to overweight, or at least add, to tech and financial and keep energy exposure lighter than heavier. Of course, this opinion is based upon more indepth analysis but simply looking at charts of the sector will confirm the thought.
Overall, the leading stocks in the leading industries are the best and safest bet. That doesn't mean buy and walk away as conditions change. A portfolio must be pruned just like a garden. Pull the weeds (sell losers), trim the overgrowth (reduce overweighted positions), but let the garden continue to yield it's produce (let profits run).
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