Rare do you find such an unenthusiastic rally, but that is what we have here today.
The bulls goosed the markets overnight to ungodly pre-market highs, but since the initial burst at the open, it has done nothing but put in lower-highs and lower-lows on the five minute chart.
There is a part of me that thinks the bulls still might try to pop this market higher into the close, which is why I haven't tried to fade this rally at all with any shorts.
As it stands right now, I am 20% long and 80% cash, and could be adding a short or two before the close of the day.
I think you have to be very careful with this market right now. There is a huge gap from this morning that the SPDR S&P 500 (NYSE:SPY) is currently starting to trade in, and if action picks up, that gap could get filled very quickly.
This is a tough area, and the list of trade setups below that I've put together was a hard task, quite frankly. The trade setups that I saw last night were gone this morning, and the ones that are still around, have some of the ugliest candles on the day.
So be careful, there is an aroma that smells like profit taking that is beginning to fill the air.
Nimble wins the day, my friends.
