Short Term Top

While the reflex rally off the most recent lows was quicker than I had anticipated, it has reached a point where caution must be adhered too.

I continue to believe that an intermediate term low was put into place on August 16-17 and that a re-test of these lows should prove successful. However, there is a bit of short term complacency hitting equities right now and a decline in prices would be just what the doctor ordered to weed out this short term bullishness.

Short term Stock positions and call options should be closed out and preparation for the last leg of removing the hedges from stock positions as the market moves lower should be the battle plan at this time.