With the T2108 above 80, many persons getting bullish in addition to the factors I outlined above; I am beginning to become more of a bear. I think many persons are forgetting that we are still poised to decline longer time. Its so foolish when I hear people say one day that the markets are in a long term down trend only to look at their blog the next day to see that they markets are now in a long term uptrend and the same thing repeating every other day.
Until I see the markets break into new 52-week high ground and many of the stocks poised to break down like Visa bounce and move to new highs; I will remain a long term bear. On the long side I am only prepared to take swing trades and even then I will not risk too much and look to take profits at 2R instead of 3R.
I will remain in cash and plan to take no positions except a position short trade I am looking to take in Visa. You can see the setup in the chart below:
Good luck and good trading!