STORMY DAY

Storming in Westchester and right in the middle of a post the power goes. Anyhow, the markets have ramped and the SPY is up over 2%, IWM+3.5% and the DJIA+2%. What to do? My guess, sell (trail ) as I have sold some etf's and some index calls into the ramp.

Sector strength across the board with the best being precious metals (+7%) followed by SOX, oils, brokers (GS up over 5 bucks), biotechs, internets, small caps and homies.

It wasn't that long ago that we got this from Liz Ann Sonders and what a great tell she was.

The VIX and the VXO are both 15% under their 10 day SMA and they rarely get stretched lower. The SPX is also in overbought territory as it trades with a 2 day RSI of over 90.

My advice, use the euphoria to lock in gains and wait for better entry points. Remember, next week is a short week and many market participants will be vacationing and may look to lock in gains by the weekend.