First, I don't think the smart money has unloaded all of their long positions so they might want to take it up a bit here to get rid of their remaining positions.
Second, Whenever you see this type of market action you know it is only a matter of time before the other shoe drops and that is exactly what is going on here now.
The probability model for tomorrow calls for a very mild up day to a complete blowout to the upside. This is the first bullish reading I have gotten from this model in quite a stretch now. The probability model seems to signal pretty much what I just talked about, that is taking the market higher one more time to suck in the unsuspecting before they take it lower in earnest.
I remain fully hedged none the less and continue to trade the intra-day swings in the market. Today was another good day with over 12 S&P points captured.
The probability model also calls for a tame opening tomorrow so we may be able to establish some day trading positions early, unlike today.
Make no mistake.... I AM NOT giving the green light to stocks right here. It just is starting to look like they can work higher over the short term.
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