Fuel for the Fire

______________________________

We had an opening pop higher this morning to follow-up on yesterday’s upside reversal. Since then, the gap has more than closed, although we are carving out a slow move higher so far this afternoon. With today being options expiration heading into a long weekend, we could easily see some shenanigans into the close. For swing traders like myself, I am not getting too worked up about today’s action. Instead, I remain focused on improved price action and volume patterns in a proliferation of issues.

Arguing with the market is not usually a good strategy, although it certainly may satiate intellectual desires. At the end of the day, though, I’d rather satiate my wallet than my ego. Mr. Market is trending in favor of the bull in 2012, and the inevitable corrections are not likely to come when they seem obvious or reasonable. No, they will come when the holdouts throw in the towel and chase this tape higher. Moreover, corrections do not come when retail traders are piling into TVIX because of its really neat gains. The TVIX’ers are fuel for the bulls’ fire, and I have no interest in throwing myself into the flames.

A few short squeeze, breakout ideas into the bell: BYD CLNE