Quiet Day...Quiet Note

It's holiday time, thus, just a quick note this evening. The market loves to rally this time of year simply because the big boys and girls are gone, leaving only the retail trader to make the moves and we know, based on froth, which way they're playing. This allowed the market to move higher a bit today, although it closed off the highs. Up is up as the big money stays away, and, thus, new records abound. It's not a healthy environment, however, as froth is out of control, and the short-term index RSI's are at or above 70 for the most part. Getting involved with new plays will be fine once some of these oscillators unwind on the short-term index charts.

It's usually not the best thing to do in terms of new buys when those RSI's are this high, so patience the best play. If the RSI's hit 80, the pullback will be much harder. Either way, it's best to wait a bit in order to improve the risk reward on new alerts. It's likely one would think that the big money will be out until the new year, so there's a strong chance we will see a market hang tough at overbought through Wednesday, the last trading day of the year. If you do play the next few trading days be aware that we are overbought and you never know when selling will occur from such lofty conditions. For now there are no red flags in terms of price, oscillators, or distribution that says a new bear is beginning. That process takes many months anyway. For now we're overbought, etc, but the big picture is still bullish.