Stock Market Bulls Are No "Grasshopper"

For the last two weeks we have been telling our readers that we expect the NASDAQ rally to culminate between 2185 and 2190. Yesterday the NASDAQ indeed hit 2187 (close enough). Although we played the long-side for some nimble trades our antenna are riding high as we are on full alert for a sharp pullback. We've been flipping around quick intraday trades with tight stops and are currently exposed approximately 30%.

The action today is very concerning to us especially after hitting our NASDAQ targets yesterday. Profit taking seems to be holding the stock market back today. We believe the Bulls are expending their last energy fighting the profit takers. If the Bulls prevail they will be spent just in time to become juicy steaks for the Bear Shorts. The Bulls are trying to pull a Bruce Lee by fighting two opponents at once. But come on, when's the last time you've seen a Bull do Martial Arts?

Be very careful here.

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