The market opened higher today and had a mild reversal but the sellers did not take control of the market as they have many times in the past 4 months. The opening prices were an excellent opportunity to sell the long-intermediate trade positions that gave short term sell signals. Could the market continue heading up and gain momentum from here? Possible, not likely. We are only looking for a mild correction and then a higher high in stock prices after that.

We have a lot of overbought indicators like the McClellan Oscillator at +123, the highest since August 1982. Look at the T2108 on Worden’s daily chart on the video last night and again tonight.

The next battle you will likely fight yourself on is if these stocks continue to move upwards but here is how you handle that.

You really have got to play the percentages, keep the odds on your side. And control your greed now that stocks are moving up. Like IBM for example, I sold at the open at $87.11 and it went up another $3 and it looks like it has some more upside to it. Or how about that we missed the LLL (or I did) and it went up 10% or $8/share without us?

Don’t let it rattle you, it is a numbers game that you try to play your best. This isn’t played to perfection but most of this is based on personal performance, how well you abide by the rules and procedures. You will be much more profitable and consistent by following the signals in these charts and ignoring your emotions. Reacting to your emotions consistently causes losses!

The T2108 chart got even higher today to 89.07, which means 89% of all 7200 stocks are above their 40 day moving average. The last time this was reached was June 2003, several months after the Iraq war started. The VIX is still drifting downward while lulling the suckers into thinking the market is going to stay low volatility and continue moving up without a correction. Wrong, don’t sucker into that! Making 8-10% this last week and being in cash is not a bad thing. It is still a preservation strategy.

Oil prices have stalled and are likely to have a brief few day pullback but be willing to get long the oil stocks again after this brief pullback we are expecting, followed by a higher high. This could ignite many stocks and sectors like commodities, metals and mining, steel manufacturers, and ag-chemicals.