Trading on the Edge

The market chugged along today. Building on yesterday’s gains. Will it go on to take out recent highs or form a lower top here? We have to take out the recent highs to get back into an uptrend. Until then there is an upbias but we are not out of the doldrums. The market looks short term overstretched to open new positions. Better wait it out along with option expiration. Essentially my mood has changed from grim red to a cautious green. If I was ready for entry on the deep grim red day, today the positions would have been heavily green. Just goes to show that the opportunities to make money are better poised when sentiment is on the extremes. Extreme bearish sentiment in upbias should be taken suspiciously. Maybe the bounce is right there…