Nothing Done

I did not make any sales today but am growing a bit nervous about the market. There has been a big change in sentiment in recent days, as investors are suddenly in the holiday spirits. This is a very tricky juncture as the rally is likely to continue but the risks are now greater.

This rally started with investors at very low exposure levels so they likely have plenty of room to add. Seasonality is also very supportive of the market as are the high levels of repurchases and cash M&A. However, sentiment is now on the bullish side and the easy gains have been seen. I will be looking to start reducing positions in the days ahead. Have a good night.

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