We have shot up 60 S&P points off the lows and as of this writing it appears the market is poised to rise again today. Markets that move in a single direction make me feel uneasy as I prefer a two steps forward, one step back type of market.
While the market is starting to make me feel uneasy there is nothing in the indicators that I look at to support my fears. Rydex traders are still stubbornly bearish and have barely budged despite the markets monster move. The market is no longer as short term oversold as it was but will not be overbought until after expiration. The data from the put/call ratio is what one would expect coincident with a 6% rise. Anecdotally, it seems people have become more bullish but I am not sure how many have actually acted on it.
I sold some SPY 108 calls as a hedge against my longs so my position is becoming smaller as the market rises. I am very tempted to go completely to cash but the facts don't support that move.