After a 4.5% rise last week, the market is gapping up this morning. I am very tempted to add to my shorts into this gap up as the word "stretched" does not do justice to this market.
However, I have not had the best run as of late and I will only take perfect trades at this point. When I am doing well I allow myself a little more leeway, but when I have a bad run I become more discriminating.
Because the market will not be maximum overbought until options expiration and the Pfizer/Wyeth merger closing could give the market some fuel I am stopping myself from adding to shorts.