Sitting Tight

The S&P 500 is now up well over 80 points from its lows in a pretty straight line, but I am still not seeing many signs of over exuberance. With sentiment having been stretched so negatively the rubber band has a long way to go in the other direction. As I wrote this morning, I have largely sold out of my trading longs but am holding on to my core positions.

I suspect that at some point the bulls will be tested. The key will be for us to see a minor correction without completely spitting the bit as we have been  recently. The fear of losing money can quickly morph into the fear of missing a year end rally. I am headed out early. Have a good night.

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