The Bulls Have Some Points

I used this morning's pre-market strength to add back the hedges I removed Friday, plus a little more. Despite this I remain modestly net long. I am willing to go net short but have not done so as of yet. There are some positives that are stopping me from becoming too negative.

• Valuations are reasonable. The market only trades at about 13 times projected earnings.


• Corporations continue to repurchase their own shares at an aggressive pace. There is some cash M&A as well.


• People prepared for another 2008 this Summer and Fall. That left a lot of people underexposed to the current melt up.


• We are headed into March and April, which are seasonally strong months.