Monday firm morning comments

The market is a bit extended here without any pullback, however as our sentiment piece suggests liquidity remains favorable in terms of the intermediate to long term. So how one chooses to play this really is more about their trading/investment style.

There are several options; first for those who are more flexible they may choose to put on some short exposure by shorting some index ETF's (such as QQQQ or SPY) or buying some inverse leveraged index ETF's such as the QID (which have corrected from $71.00 down to $35.50 (at its recent low) without so much as even a bounce)

Second some others may just choose to ride out what may we believe at present to be a normal, healthy and needed pullback.

And last but not least some may use the weakness (should it materialize) as a buying opportunity.

In the words of famed market analyst Ralph Bloch, "If we could make the market do our bidding," we would prefer to buy some leveraged inverse index ETF's see a 5 - 7 % pullback then unwind those at a profit and then buy back into select longs for a move up to our 950 S&P 500 target.

However we know these dream trades where everything works out exactly as you plan don't unfold to often if ever lol !.

But for the record we like being pro-active with tight stops and after a 40% rally from the lows to have reduced long exposure hedged with some short exposure makes sense for the time being.




posted by Peter Greene