In the Midst of Creating a Mini-Bubble
Volatility expansion day occurred as expected and the market is now overbought. There’s no doubt that the Fed wants to see asset prices higher and is going to remain as accommodative as possible. This is likely now in the midst of creating a mini-bubble but bubbles can last quite some time. As we have been saying since last year, the path of least resistance remains higher and we’ll continue to focus on the long side until prices show otherwise.
Daily Battle Plan subscribers should have locked into their gains again in SPY on the close last night.