SELL OFF COMING?

The market is extremely overbought again. This is usually an area where you have to be cautious. I've had some bullish recommendations over the last few weeks due to the continued strength of the market. I also bought some calls on the VIX as a hedge in case the market sells off. The market showed some weakness on Friday as many bullish stocks started to sell off a bit. This could continue on Tuesday. The trouble in the Middle East could cause oil and gold to spike. Many of the energy picks given out the last few weeks could have big moves up tomorrow. Many companies tied to gold and silver could also have big moves up. A market sell off is needed. It will either provide another opportunity to get into the Bull market or an opportunity to buy puts if the market trend is changing. Watch the price action on Tuesday. If the market sells off early, see if the buyers show up at the end of the day. If they do, there might be an opportunity to get back into some of the strong bullish trends. If the market can close back below its 10 day MA, there might be a bigger move down that we can take advantage of.

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