Not much has changed except one thing. The chart looks the same as it did last week, price rallying, commercials selling. We have reached the over valued zone however, so we may be nearing a short term peak.
We have what I call a running market now where we have very small retracements, too small to enter longs, and the price just keeps creeping along. The PPT showed up in a blatant fashion the last hour of the Tea Party day. There was no way in the world the new administration wanted a down close on that day, and they clearly manipulated the futures during the last hour.
What to do? In all honesty I have lost some money trying to short a few things this week. This bull move is lifting virtually every thing in the world except the soft commodities, and a couple of currencies, so shorting what is a pullback against a long term down trend has not been profitable this week. However, over the long haul, that is the way to play things.
Be careful shorting the stock market until we see some sign of the institutions slowing down on their push here. I will post something when I see that happen. The good news is that this is a great opportunity for those who got hurt last year to be able to now begin moving back into cash having recovered some of their lost money. Hard to say numerically how far this could go, but time wise another month or so is what I am thinking.