Tapering Lite Triggered Buying Spree

As we have been seen over the past weeks, there was a large buildup in protection being bought as the VIX rose over 25% from its late November lows. Once “Tapering Lite” was announced yesterday and surprised most of the market, the protection was rapidly unwound and the buying spree was triggered.

As things stand right now, the great bull market of 2009-2013 very much  remains in place and the path of security prices remains higher heading into 2014. Picking bull market tops, as so many experts have done this year, has never been nor will ever be a viable strategy. Yesterday once again proved that.

Most markets are overbought today. We’ll wait for them to pullback to get long again.

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