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…and step up your vocab.
The bulls are acting like it is already Friday night on the town, going all Big Pimpin on this market. The bears completely blew a golden opportunity that they had after yesterday’s final hour selloff. Breadth is as strong as I have seen in quite some time, helping to conquer the 1131 level on the S&P 500, once again.
The next key level is 1150, which has actually been a significant price level for over a decade. Recently, you will recall that 1150 was a brick wall back in January of this year, as failure at that level marked the start of an 8% correction. This past Tuesday we failed at 1148, and now that we are back up here again I expect us to at least see some churning.
As far as my positions, I am letting my longs run and resisting the urge to quickly sell into strength. The main reason why I can afford to do so is because of my hedge, going ultrashort the Q’s. I am also stalking a variety of longs, in the even this momentum has much more gas left in the tank than anyone thinks is possible.
Stay tuned.
The PPT wins again!