Today, is seasonally the strongest day of the year. After today seasonality will be less of an issue as we are passing the strongest part of the month. Nine months of the market going straight up has led many market participants to forget that the market is not a one way street.
I am not going to rehash all the signs of froth but yesterday only added to it. There was call buying all day and breathless media coverage. I will be looking for an entry point today to move to a net short position.
I don't mention the emerging markets often because I like to stick to my knitting, which is US stocks. But I can't help but notice that every pundit is positive on emerging market stocks. Usually that means stay as far away as you can.