NEW YORK (TheStreet) -- The stock market continued its move higher on Monday as the DJIA closed up 75.65 points at 17076.87 and the S&P 500 was higher by 9.52 to close at 1997.92. This was after briefly going over the 2000 level. The Nasdaq was higher by 18.80 to finish at 4557.35 and the Russell 2000 closed up 4.88 at 1165.22.
The Russell 2000 is now up fractionally for the year to date after being negative for most of 2014.
Once again this stock market is uninspiring. The S&P 500 Trust Series ETF (SPY) volume was a paltry 63.7 million shares traded on Monday. I am now just waiting for the hedge fund machines to finish their buying spree.
Read More: 7 Stocks Warren Buffett Is Selling in 2014The stock market will turn down this week. If the stock indexes open to the upside on Tuesday, the DJIA, Nasdaq and S&P 500 will all have an extremely overbought algorithm number. This does not happen very often. We are talking DJIA - 99, Nasdaq - 99.88, which is approaching extraordinarily overbought, and S&P 500 - 99.04, according to my algo numbers. If you are a trader, the risk is extraordinarily high in buying this market up here. You would be better served sitting on the sidelines and waiting for lower prices which is inevitable. There are numerous negative divergences in this stock market from the weekly new high/new low list to the lack of power and force behind this move higher. I am perfectly content to sit in cash and have short positions in this market. The number of small- and large-cap extreme overbought stocks is massive and the number of extreme oversold stocks is nonexistent. Read More: How WhatsApp Will Help Make Facebook Money On Monday, I added to my Direxion Small Cap Bear 3x T (ZA) long position along with Market Vectors Gold Miners ETF (GDX) and ProShares UltraShort S&P 500 (SDS) . I added to my Brinker Intl. (EAT) short and started new short positions in MagnaChip Semiconductor (MX) and Vector Group (VGR) . At the time of publication, the author was long TZA, GDX and SDS and short EAT, VGR and MX, although positions may change at any time. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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