I had been in sync with market until Friday, when the bulls came back with vengeance. Earlier this week I turned less bullish after less stocks came up to my scan and both the bank and the semiconductor indexes underperformed. I thought we were due for some sort of pullback and I bought a large short position of SMH to hedge my longs. Fortunately the short position was stopped out with a little loss Thursday, but my long positions are under invested at the start of today. I quickly added some exposures as the market opened, though at the end of day I am still not fully margined. Here are some thoughts for the next week.
1. The market has been strong and the individual stocks have performed very well, just like a bull market.
2. More sectors are turning up and about to break up.
3. The semiconductor sector comes back ! Usually a good sign!
1. The market and the stocks have come up quickly without any pause. Now some of them are near the heavy resistance.
2. The sentiment has moved to more bullish side, thought it may need more extreme bullish sentiment to reverse the trend.
1. The bank has not participated in this rally.
That is all the negative factors I can come up with. I didn't count the fundamental factors that takes much longer time to have effect.