No Need to Rush on the Short Side
We just continue a slow grind higher. Helene Meisler and I went back and forth on the current stock patterns in the S&P 500 on a very short-term basis yesterday. The details aren't as important as the conclusion, at least from my view. I concluded there just were not any compelling reasons to continue to initiate or push a short position. Granted, this view means I won't ever catch the exact top, but I can accept that if it means I don't have to have salt continually poured into a wound day after day.
There is no strength in gold or silver or in U.S. Treasuries right now, so there is no reason for momentum traders to leave equities and look elsewhere just yet. It is not as if cash is an attractive alternative, and the doubters continue to doubt this rally. I agree that it is difficult to find true logic here, so I would stay quick and nimble without over-committing. However, don't get too stubborn on the short side. Wait for it to come to you. I believe that when we do get the pullback, there will be plenty of time to get involved on the downside....242 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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