I’m actually net short on this market – that is 10% short, 90% cash.
I honestly see the reward being to the downside, while the market to the upside has hardly no reward until the market does in fact pullback.
Basically the market is stuck in a conundrum. Bulls want this market to go higher, but will have a hard time doing so, until they take some profits and let price action come back down some first.
Maybe I’m wrong (it has happened before), but to me, the market has a buttload of resistance overhead. Pretty much every thing from 2040 on SPX all the way up to new all-time highs consists of resistance and with the market this overbought, more than it has been in over four years, it is hard to believe that stocks are just going to keep rocketing higher here.
It needs to breathe.
It has to breathe.
But will it? Or are we just destined to sit at low volume, sideways market action for the foreseeable future.
Something has to give.
