Back In

It was obvious the MTT was going to go green yesterday afternoon so I jumped back in going long TQQQ.

The talk around town is the market is overextended and this is a bad time to go long. I know of a few people that cashed out yesterday expecting the worse.

To me this is not the right play at the moment. I don't know if the market has topped out, but I do know we've seen a nice bull run over the past month or so. If prices are going up, then there's no reason to exit at this time.

Wait for the market to give you a sign -- such as a big down day or consecutive big down days. You'll lose a little at the end but you'll make up for it the times where the market continues higher for weeks to come.

Last year was a great example of this. January 2012 was a great month and then everyone got scared in February and March at every little down day. Many traders exited their positions and missed the majority of the profits. Some even lost money when they went short and tried predict the top. Sound familiar?

Our long term indicator has remained long and we'll follow that. As long as that's green we'll continue to go long when the MTT tells us to. When the long term indicator goes red then we can concentrate on our shorts.