The market continued to follow through by making a higher high today and I am expecting a bearish wave any moment now to reset some of the overbought conditions. However, since there is the possibility that we are on a Wave 3 and not the end of a Wave 5, the market could keep on rallying to challenge the 1422 year high before taking a breather. The market could technically get a lot more overbought so I am sticking to my strategy of staying long and closing my short hedges by the end of the day, which has resulted in couple of more months worth of starbucks coffee for me today :)
Fundamentally speaking, the market is usually ahead of the news so perhaps there will be a turn around from the negative news and we'll see again headlines of a "recovering" economy. And if we get relatively good news on economies around the world, the market will surpass its all time high regardless of what bearish count anyone thinks we are on.. mark my words. Stay with the trend!
Long Term Portfolio: 100% Long
Short Term Trading Strategy: Shorting intraday extremes, closing same day
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