Ok, the IYF broke above short-term resistance yesterday (helped by a good deal of short covering I venture), and yeeha we have some follow through today, although it's 1:00 pm est and the market is hardly awe-inspiring, despite the pompom waving financial media's happy dance because the DOW briefly crossed all time highs today.
All this stuff was very predictable I'm afraid, and designed IMHO to suck in more reluctant buyers into the market that is tracing a beautiful DOUBLE TOP.
Anyway, day by day I'm feeling more and more certain that we are in late innings of the post February selloff rally back to the breakout point (and beyond).
Now there was some profit to be made by buying financials a few weeks ago, and maybe I should have jumped in, but I felt much better about energy stocks than bankers at the moment.
But do not be fooled; we are in the late stages of the current rally and the opportunities will (in the uncertain future) be on the short side of the major averages...JUST NOT YET. I am still in wait and see mode.
Now if I'm wrong and the DOW is headed for 30,000 this year, I STILL think there will be a short side opportunity in the coming weeks, if only for seasonal reasons.
Stay tuned kids.
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