Stock Market Direction

As of January 25, 2013, it looked like the stock market was overbought and due for a pullback.  The yield on ten-year treasury bonds was $1.98 which signifies a lack of interest in bonds, and this occurs at stock market tops.  The New York stock exchange bullish percent, $BPNYA, was also showing overbought.

Of course, the stock market can stay overbought for a lot longer than you think sometimes.  Also, there is not really any bad news to bring down the market since Congress and the President have deferred their budget battle until May.  If there is a pullback soon, it may be wise to buy UDOW, the triple Dow ETF, because this is the best time of the year to own stocks.  We could possibly go a lot higher before May if we have a correction sometime in the next month or two.