The gap higher this morning is yet to be faded and many stocks are playing along in the rising tide. Given these conditions, I’m very hesitant to fight this tape by any means of hedging, raising cash, or shorting.
My style is to never fight the tape. Quality volume or profile shape aside, if price is moving higher that is the final arbiter. Price pays, nothing else. I would not consider fading today or cutting small losses unless we see trade move back into yesterday’s value. On the S&P you would look for trade below 1468 as your sign.
Until then, enjoy the levitation and consider buying some strength, Texas hedge style.If you enjoy the content at iBankCoin, please follow us on Twitter