We declared risk ‘ON’ weeks ago and today it remains on. That is obvious, with the ridiculously over bullish sentiment. Further, today brings a new recovery high the Junk Bond fund HYG, while its ratios to Treasury and Investment Grade bounce.

As usually happens, momo oriented bulls come out to play well after the turn (after all, everybody on the planet knows the US market is in breakout territory now). The question for markets remains in whether the indexes will correct when they reach short-term breakout targets (we are tracking them in NFTRH) or proceed forward to out of control mania?

I am trading now on a stock by stock, market by market basis locking in gains and remaining flexible in the short-term. It is just not in my makeup to be comfortable setting it and forgetting it along side the kind of bull now at play. Risk management is never out of style.