The Grinding Rally

The market is slowly grinding higher as underinvested managers use every dip to buy but are reluctant to chase the market higher. The market will be overbought at the end of the day today but it won't be a great reading. If we see some giddiness by the end of the day it would likely be a decent spot to make some sales.

I see many traders that have been unsuccessfully looking for a pullback as short term sentiment has gotten a bit heady. It has happened too often to me that I have been bullish intermediate term yet found myself net short because I was looking for a small pullback. It was just not worth it. About a year ago I decided that I would no longer allow myself to get into that position. As the market gets more frothy in the short term I will make sales. But I will not find myself net short until I am intermediate term bearish.


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