Email to Key Access Members this Morning - 20100319

Weakness Finally? - 20100319

It will be interesting to see if the markets finally pause or pull back today. They have defied gravity for a record run and are extremely over bought at this point. The big Investment Managers are fully loaded long into this market at levels that haven’t been seen since 2007. This along with other technical indicators are very bearish for the markets.

Option expiration date has been pretty non-eventful over the last few years but has historically shown that major swings can occur. With that said, it would not surprise me if we see a nice pull back today. I’m not looking for a prolonged bull back but rather a quick hard 2-3 day retracement of about 5%. I’d like to see the overbought levels slowly bleed off from there. It is at that point that I’d take short term profits on our positions and look to go back long.

That’s looking way too far down the road so we’ll just work with what the market is showing us right now and what that is-is over-bought and screaming to pause or sell off.

 - Dennis Glore


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