Stocks Will Inch Higher. Resist Temptation and Wait For Clarity. Buy Puts On A Close Below SPY 125


Yesterday, the market tested the downside early and bears could not get anything going. By mid-afternoon stocks rebounded and they finished higher on the day. The SPY is above 125 and as long as that breakout holds, I will be on the sidelines. Asset Managers are nervous. They are more concerned that they will miss a year-end rally than they are about a credit crisis in Europe. Portfolio returns have been negligible and this is their last chance to put points on the board for 2011. It’s all about relative performance and many Asset Managers are under allocated. Without question, stocks …

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