Positioning For Higher

The WSJ reports that investors are stampeding into initial public offerings at the fastest clip since the financial crisis.

Last Friday, the Container Store went public at 2X its offering price.

Americans are not only drowning in stuff but they're throwing their money around in similar ways to major market tops. Sentiment is at highs levels, margin debt is at record levels, and IPOs are receiving speculative frenzy -- Twitter just boosted its IPO price 35%. All this while oil slides.

The market doesn't care. It's showing signs of shaking off the bears once again and gathering steam for new highs. Whether it does so from current levels or slightly lower ones is immaterial. From a wave and pattern perspective, its correcting. Corrections should be traded with the trend.

It is when corrections become impulsive that they are actually trend changes. This is not the case yet in my opinion.

Getting below 1740.50 would put this opinion to the test. Until that occurs I'm positioning for higher prices and marginal new highs.