The Melt Up

The stock market has been on an unwavering path upward and we still believe this will continue for several months. However, a phase low has been projected to come soon. It seems to have been pushed out with the recent melt up. This low can occur sometimes with a week or two lag. However, The lack of a noticeable phase low occurring hints to the underlying strength to which this market is trading. This melt up is impressive given the many uncertain factors out there in the periphery. Now that options expiration is out of the way we could see a meaningful move. The large number of shorts out there was concerning and may have played a large part in this slow melt up. Those that were short and are intending to buy back or cover their shorts will occur Monday. This melt up could be just for them and once they all pay up at the high price, it could be then that we see a meaningful move to kick traders in action. Now, as far as riding this melt up, it pays to see the outcome of the uncertainty out there. In the meantime, check back for new trading ideas.