The market has been overbought since Tuesday. There has been an uptick in put buying and we continue to see a decent supply of stock hitting the market. Despite all that the market continues to march on. I have underestimated the bulls.
The bears still have a pocket of opportunity between now and option expiration to take the market down. The market is still overbought and I believe it is more likely than not that we will see a Citigroup secondary next week.
I covered my Bank of America short in the after hours session yesterday. On Wednesday, CNBC declared that we would see a Citi secondary on Thursday. That did not occur and I fear we might see a short squeeze in the financial sector today. Many likely shorted in anticipation of a Citigroup secondary. While I believe that a Citigroup secondary will occur, I am not going to anticipate it. I will wait for the announcement and then act.