Still no Sell Signal
The end of last week refused to give the sell signal, so it is still a long side market. I am relieved simply because it would have had to have been ignored due to the seasonal up bias still in place. If we get one in March it will be past the filters for time of the year.
We may not get a sell signal, so there is no reason to be short until one develops. We have had a tremendous run, and the trend is up, so ignore the gloom and doom of the doubting Thomas types and stay with longs until we get something that says not to. There are some internal aspects that have weakened slightly, as you can see the commercials are mostly on the short side. As a result the base underneath is not as strong as it has been for the last several months.
All this really means to me is to not add too agressively to existing longs at this juncture. It does not mean run out of the market and hide.