Good morning Larry,
I would like to get your opinion. The Nasdaq did break above the trendline yesterday but I notice it didn't close above its last high on June 8 and its still a ways from the April highs. Even though volume on the long side has risen we still seem to be making lower highs. Do you think the edge is still on the short side or the long side not withstanding the short COT position?
I’m glad you added the COT disclaimer because what I’m about to say has nothing to do with the COT. It’s a completely separate issue.
On a very short term basis I think the edge is on the long side. And when I say very short term I mean maybe into next week. You’re right there is still resistance overhead and the bullish consensus and complacency is getting a little on the ridiculous side again.
Just to give you an idea of what I’m doing. In the trading portion of my portfolio I have almost all longs. Mostly momentum plays like I discussed in the SMR before last. Stocks like BSTE, PCU, TLT, SWC, ANIK, LIFC, and some gold stocks (over and above the 10% that I don’t trade). With these momentum plays I have close stops because I don’t know how long this is going to last.