Asia finished mostly higher and Europe is doing the same. The stimulus induced recovery worldwide has been so great and the thinning down in corporations to create profits so great that the combination of the two continues to edge equity markets higher and higher. I'm not a valuation person and I can't tell you if this market is overvalued. There's way too many assumptions that go into that model as well. All I can say is that there's not in the charts that indicates a sudden uncontrollable drop that will push us inexplicably lower in a fast and hard way. The residual strength and the various timing oscillators I watch suggest that if this is a topping process, it has further to go.

In the very short term though, we have the OTC issues at new highs for the years and listed issues dragging still. Unless OTC can keep pushing, there will be many who look for a double top and starting selling down their holding a bit or speculatively shorting. That's just the way it works. That should create a vacuum of sorts that could see a quick spill but my take is that it will be bought rather quickly and new highs registered before this is done. Just my take.

The boards are quite to start the day. AAPL is up which has become a regular now with the rest of the big caps trying to help but if you noticed yesterday, the rest of them are tired beyond belief. Same is true of the small caps. Everything is horribly stretched here on a short term basis but in the end it usually comes down to who blinks first and in this case, whoever blinks first probably gets slapped pretty hard.

I continue to protect more the higher we go. Just the way I do business. In yesteryear's I would try to play the edge more aggressively but anymore I much more about evening out the return the best I can and keep slowly pushing them north. This time is no different.