Caught Off Guard

The market blew past yesterday's high of around 2183. Clearly the buying pressure was even greater than we expected. There's no other way to say it except that, "WE WERE WRONG" in thinking that the pullback would last a few more days. This is the reason why we refused to allow our long exposure to fall below 75%.

We have added back some exposure into strength however we do have a new concern about this action. Pullbacks are meant to restore health to the market as long as they don't go too far. The fact that this market has been denied a healthy enough pullback from these levels is a little troublesome. Therefore, the exposure that we have added into strength will be more of a rental as opposed to a buy and hold.

Now would you please excuse us while we wipe the egg off of our faces.

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