THE PRICE IS ALWAYS RIGHT

I have been pretty bearish on the overall market for the last week, but I can't ignore what the price is actually doing. All three market averages have broken out to new highs within this latest trend. The S&P 500 is now above its 200 day MA. These are all confirming the uptrend. The VIX did move up today on the big rally. This tells me that the smart money is still a little cautious about today's move. I wouldn't chase this move. If you already have positions that are making money, sell some contracts and lock in some of these profits. Hold on to a few contracts to see if there is some follow through tomorrow (or over the next few days). I don't recommend any new positions right now. I am still very cautious about the big picture and I don't see many short term patterns I like. I will add some tonight if I see any.