With stocks up around 2% on top of the santa clause rally we  are certainly nearing near-term overbought levels around 1280-1290 on the S&P 500.  As such we took full profits in our bucket 2 long position in SPY (see earlier blog post).  For now we will remain in our remaining two bucket 2 long positions of FDX and MMM.

The fundamental picture is improving but serious unknowns around Europe and U.S. fiscal issues remain and make this market tricky to trade too heavily from the long or short side. 

Don't forget the jobless claims number for December this Friday.

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