The market is still showing no real signs of rolling over, and while we are very extended, according to some, there doesn't seem to be any reason to jump into shorts. We just aren't seeing any cracks, although there is a more complacent tone.
The bears are still shell-shocked from last week, and you can't blame them for being nervous about the chances of more last-hour squeezes higher.
I want to be very selective with any new purchases right now and not jump in just because there aren't any meaningful pullbacks. This market has obviously caught a lot of folks by surprise, and that is why we are staying so stubbornly strong, but that doesn't mean we won't see a dip here soon.
While the market is acting just fine, the stuff I'm seeing leading today, such as smaller banks and secondary biotechs, strikes me as being indicative of the late stages of a move. Given that we haven't rested in two weeks, that isn't exactly a profound insight, but it is keeping me more cautious....
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