Much to the chagrin of the Zero Hedgers, the end of the world has been delayed yet again. The Italian bond auction was not great but is now in the rear view mirror and likely to be forgotten in a few hours. The strength in the dollar and weakness in precious metals are putting some pressure on the "risk on" trade. The strong dollar trade is likely being exacerbated by year end.
The market will be overbought at the end of the day today but can get more overbought through Wednesday of next week. Seasonality remains very positive although we have seen weakness on the last day of the year the past few years. Had we rallied through today I would have reduced positions. However, I believe yesterday's correction is setting us up for one more move higher before a better overbought reading.