Here we have the classical case of 22000 talking heads trying to call the top, but if you look at the chart it screams bull market. And not only that , but a new milestone: 22000. Merrill Lynch is bullish on America. So are we.
The INDU is stronger than the S&P because of the greater variety of instruments in the S&P. This is probably an oppportunity, not a problem.
In the immortal words of the Yogi, it ain’t over till it’s over.
We put on a small hedge on a whim, but we think the thing to do is just hang in there. We might even add on to our SPX position the crazy way things are going.