09Jan11:26 amEST

I Like My Nose, Mrs. Mulwray

All things considered, the further push higher in equities this morning seems just a bit too easy for bulls.

We have indeed weathered a whirlwind bunch of headlines and potential market shocks over the last week or so, with shorts finding themselves trapped badly more often than not. Case in point: Tesla has been on a seemingly never-ending short squeeze higher, although it is reversing mildly to red as I write this. 

Still, seeing the likes of Apple rally into the sky every day is beginning to smack of a little froth, especially with this morning's gap higher in both AAPL and QQQ in general. Whether or not a meaningful correction is imminent is anyone's guess, since we could still be in the phase of melting up or even blowing off into, say, March (not unlike twenty years ago, if you can believe that, in the dot-com grand finale). 

However, if we see AAPL reverse lower and trap in some latecomer longs it could easily lead to at least a near-term shakeout to reset some charts as we head into a new earnings season later this month. Note that AAPL and QQQ both gapped up to their respective upper daily chart Bollinger Bands, for example. 

As a result, I have a been a seller into this morning's strength, albeit seeing the likes of SVMK gain traction gives hope for further rotation. 

I am not yet prepared to put on a hero short position for the indices, let alone long volatility. But I am also not looking to be a nosy kitty cat and get caught pressing longs into a potential AAPL rug-pull--As sizable as that market cap is it still would likely reverberate throughout the market at-large. 

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