Quote from Cutten:
We are in a trading range 1255 to 1400. Until the market makes a clean breakout, say to 1440 or above, or 1220 and below, that will remain the case.
Trade it as a trading range until it breaks out, then trade it as a bull or bear (IMO a bull breakout is more likely later this year) once the market gives the signal by breaking to new ground.
If you trade it like a bull market, you will get killed if we go to say 1400-1425 and then pull back to the lows of the range. Whereas if you play it like a range, you will exit at 1400 (or at least hedge with puts), and only get aggressive again once it hits 1430-50.
Another sign that a new bull is starting is that the market will hit highs for the year, but sentiment will be sceptical of the rally.
