Walking The Tightrope

There are alot of headwinds about to hit the economy:

• Austerity measures will hit global growth.
• Municipalities are also enacting their own austerity measures.
• Stimulus is wearing off.
• Mortgage resets are about to hit.
• Inventory rebuilding has largely run its course. 
• Comps are getting tougher.

That said, the short term outlook for the stock market is positive as sentiment became too extreme and we are now working off that extreme. I am likely going to press my longs until expiration next week. At that point I am likely going to go to cash as I want to err on the side of caution with the macro headwinds we are facing.

The outlook for today is a tough call. A pullback would not be surprising after yesterdays surge. But I think shorts and under invested bulls will be pretty quick to jump on any weakness.