There is no rule saying that the market cannot continue its steep ascent, despite the many signs of frothy sentiment I have recently pointed out. My investing discipline is to pare back my risk when the crowd gets frisky. I almost always sell out too early, but rarely hold on too long. This is a tradeoff I am willing to make.
Seasonality will be neutral into mid-March when it turns very positive into mid-April, which coincidentally or not is the IRA contribution deadline. I would love to see some of the froth come off of the market before mid-March. It would set up an excellent trade into a very seasonally strong time of the year. I continue to wait for a fatter pitch before taking more risk.