Overbought Pullback

I believe today's decline was the start of an overbought pullback and not the beginning of a new leg down in the market. I do not know how deep this pullback will be but believe there is a very high probability that the market will rally again once the pullback is over and score new highs (relative to this past week's). Markets tend to re-rally after strong overbought readings are worked off and I believe that will be the case again this time.

Rather than try to capture a couple percent in a pullback and risk losing my longs I am willing to endure this pullback. Have a good night.

No comments: