Coming into April I envisioned a rally into expiration that led to extreme bullish sentiment. Following that rally I thought we would see a meaty correction. Instead we saw a correction during this normally seasonally strong period that has turned sentiment negative. As a result I believe that we will now see a two way market.
I am a big fan of two way market as I prefer to buy weakness and sell strength. I believe this will be a good strategy for the next few months. Right now we are closer to being oversold so I am positioned on the long side. As the market becomes overbought I plan to trim positions.