Well, SPX remains below point B, which we had noted as a key area to decide on whether or not a next shoe will drop for the market. So far, so good (or not good, depending on who you are). I am trying to stay neutral and be the best bull or bear that I can be. But during the decision making process (i.e. grinding around 2725-2750) that has meant keeping it close to the vest and not over stepping my bounds. Still weighted long, but in raising cash (by selling some things bought at the last bottom) and increasing an SPX short position, less so. Ideally, I’d lean shorter if 2700 goes.
I continue to lean toward the bullish side beyond the ‘next shoe’ question. Especially if SPX kills everybody’s spirits and fills the gap in the 2400s. I don’t buy the new secular bull market talk; I think we are very mature on this bull market. The question is, one more wave up?
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