Late In The Game

An up market on Monday would be day ten of the rally, which would mean that we have reached maximum overbought. However, the day after options expiration is often weak so a rally today would be close enough. No matter how you cut it, it is getting late in the game for this rally.

As readers know I have mixed feelings about the market. I believe that the economy is weakening but think we could still possibly rally because sentiment is so dreary. I will likely move to a market neutral position or to a  slightly short position and see how far next week's correction takes us. If the correction is contained to 2%-3% than I believe we will likely make a higher high after the correction. If the correction is deeper than a move lower into the Fall may have already started. My best guess is the former as I believe this market still has to suck more people in before heading lower, but I am keeping an open mind.

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