There is lot of strength in select sectors like Gold and Silver. Lot of top of the range breakouts.
So what next for market, a journey back to the bottom of the range. Watch the small caps very closely. My system is predicting weakness in near future.
As usual do not trade based on this recommendation. As you have seen in recent time both the Bond and Index calls have not as per forecast.
If you are nimble there are good trading opportunities. Look at Vonage VG up 33% from low in last 7 days.Like that there are 847 stocks in my database which are up 25% or more from bottom in last 65 days verses 417 which are down 25% or more from top. To give you an idea some of my equity trades which have done very well in last couple of months have been STEC,NUHC,RIMM, CHCI and MWRK. Some were quick trades, some I am still holding and in some have taken bulk of profits and holding token positions.
The key is to have a system which relentlessly looks for long opportunities. It should be dynamic to adjust to market conditions. Sometime you find opportunities at top of range, sometime at bottom of range.In some market environments you find triple digit opportunities in some double digit. Always remember long strategies make more money than short strategies. The reason for that is obvious. I have in my repertoire 2 bearish strategies, but they work only in really bearish environment, which are rare.
As a trader I am not married to a permanent bullish or bearish hypothesis. The problem with that is it prevents you from looking at obvious trading opportunities. All I am interested in relentless pursuit of trading opportunities.