A field day for the bulls in which they broke several important resistances. The charts below speak for themselves. It seems both S&P and the Nasdaq have some more room left to the upside.
As I mentioned in the short post earlier today, I took some long positions today. If you are wondering how could I go long when I didn't like the odds of being long here (as mentioned yesterday), the answer lies in this post which I wrote a few days earlier. Trade what you see, not what you think.
That being said, I still did not forgo my belief that the markets are overbought, like I wrote yesterday, and a pullback is long overdue. This made me take small positions in all my long entries. Today's market action, if anything, has made the market become ever more overbought and increased the odds of a pullback. The NYSE McClellan Oscillator has in fact reached its highest levels since March 2009. Hence, I will be selling most/all of my newly entered long positions tomorrow.
One of the positions I might consider holding longer is NGD, a gold play. I really liked the action in gold today and think that a retest of previous highs is on the cards.
Take care and good luck!