By Sell Puts
Welcome to another week of shenanigans! WE came in with a nice head fake this morning, only to have (if you were short) your face ripped off by one hell of a buy program triggered on the back of the daily mutual fund/retail brokerage ramp hour...
The market is currently up 1.5% on meager volume. We are breaking highs almost back up to the 1140 level in the ES. Seems like this perma bid is not going to leave anytime soon, might as well trade with it no matter how much i do not agree.
Market conditions are screaming overbought, but as we all know oscillators and lower indicators can remain "wrong" for quite sometime. As of August 10th 86% of stocks were above their 20 day MA, today the number is nearing 90%. The 10 day ADR is approaching overbought which is 2.0, this as volume is as low as it was during Xmas of 2009. We could move higher to the upside nearing 1150 as that is the next stop to the upside. Last time we were trading with a 1150 handle is in early May. Yearly ES high is 1216.75.
