The bulls couldn't have really asked for a better day. As I pointed out yesterday, the McClellan Oscillator was at extreme overbought levels (it climbed back a little today, you can check it out under "some useful links" on the right). There are basically two ways a market can react to these sort of overbought levels dear readers - (a) a sharp pullback (b) sideways consolidation. The markets chose the latter today. Another couple of consolidation like today and we will be ready to power up ahead. If only it were that easy dear readers.....this being the options expiry week, expect the volatility to return sooner rather than later. However, no matter how overbought, I would still not short this market for one simple reason - This market has been blessed with some very strong and impressive leadership. Stocks like AAPL, LULU, VMW, SNDK, NFLX, CTRP, DECK are just marching ahead.
Personally speaking, I sold my remaining PMI position close to the HOD (lucky!) at 4.40 for an overall profit of around 2.7%. Seeing how well the markets were holding, I decided to continue holding my NR and NGD positions. Also, close to the end of the day, I entered GMXR at 7.99.
I will be back with some charts that I like later tonight. Take care and good luck!