Attitrade Index Update

For those of you that are regular readers of my blog you are probably familiar with the “home cooked” index I used to call the secret sauce. Nothing special, just an average of some sectors I track. As we continue to grind higher into the close of 2010 the index is beginning to look over extended. This doesn’t mean I’m expecting a pullback here and the index is still firing buy signals. What it does signal is the need for me  to be prudent in establishing new longs in my discretionary account while protecting profits.

I’ve never been one to predict what’s going to happen in the coming year as I’m best with the next cycle so I’ll spare you my prophetic monograph for 2011. I will say that I’ve been long some calls in $IWM as a seasonal play and I’ve found myself ready to take profits on a daily basis. I know, kind of sad when you don’t even believe in your own positions. Bottom line is that I’m not sure what 2011 will bring but I do know that the markets will still be here and I’ll be participating.