Danger Building Up...

US market continues to power upwards so far despite my very gloomy outlook for this week.

In fact, even though the market did close just a tad negative yesterday, it was still a largely positive day which made a new historical high intraday. The bullish undercurrent was supported by rising bond yields and put call ratio staying strongly in favor of call options trading. Both signals are strong bullish supporting signals.

However, this continues to be a condition in which I would continue to favor profit taking over putting on new positions as the market persists in grossly short term overbought condition which makes every single new high ever more dangerous and the resulting pull back more severe. Indeed, danger is just building up with every such days...

As such, I continue to maintain my outlook that this week or the next is going to see a very dangerous intermediate pull back.

For now, the market remains in all out bull trend.