Market Continues its Rest

We are experiencing a pullback in a very strong uptrend. Some traders with a very agile approach will likely try to short the pullback here but we don't recommend it. Surprises in strong up trends usually occur in favor of the trend. This week is likely to be a volatile one and there is a good chance that the open gaps on the QQQQ from November 17 and December 1 will be filled as overbought conditions are worked off here. This will be a good opportunity for the market to shake loose some bullish sentiment allowing the indices some power to push higher once again. The breakout in the gold and silver mining companies is likely to resume its trend soon but at this time there are no favorable entry points. There are a few set ups in the broader market, but risk of failure is fairly high and it's still early in the week. We prefer to stay sidelined another day managing our open positions and waiting for more favorable entries. Keep in mind that waiting for the right time to enter a position as well.