THURSDAY, FUTURES INDICATED HIGHER

Yesterday the major indices ended mixed, but dip buyers were not backing away – still actively doing their thing. The Nasdaq posted some strong gains with semiconductors, consumer discretionary and retailers quite strong. Apple obviously had an impact. And less than an hour before the opening bell, the futures are indicating a higher open.

Yes, the news for the most part has remained pretty much okay. The trend is clearly higher, and as the saying goes, the trend is your friend. But day by day more and more chart entry points are simply getting harder and harder and harder to find. With three "harders," point made. Charts that are interesting are basing near highs -- a look rather like ARTG.

If any of those Bears decided to buck the consensus of the pow wow a few days ago and, instead of chasing higher, decided to bet short -- they have undoubtedly been feeling the pain and may very well be getting squeezed.

At the moment, we are pretty much market wallflowers – except for a tune we cannot resist, we are sitting out the dancing. We have positions on the long side that we are already in, but are not buying new or adding to many longs here. We always have been first about protecting our gains – and the risk/reward simply is not calling us onto the dance floor at this point. We simply don’t mind standing around the punch bowl and watching other dancers – until the conditions are right and they are playing our kind of music for dancing. As overbought conditions get worked off, the dance floor will once again look more inviting.