For the last three weeks I have been expecting some selling reaction from INDU / DIA YR2 and then SPX / SPY YR2. INDU soared through its level without any resistance. But this week SPX did reject its YR2 and for a few days hedges looked to be the right move.

Hedges were about even in the end, so this isn't really a matter of taking a hit to the account. And the next time the market is on big levels while being overbought at a relatively high valuation I will probably hedge again!

But right now it seems like the market is primed for more melt- up. As usual a lot more coming up on the blog over the weekend.

SPX has started to clear its YR2; SPY testing. We'll see what happens.