Up 40%... now what?

What a vicious rally !! I use the word 'vicious' because the short have been decimated in this move up. In terms of intensity of the trend, many brokers are comparing the current rally with the Oct 2007 - Jan 2008 rally that took the markets to their bull market peak..

Momentum is a very dangerous adversary to play against. I recommend staying long with exposure between 70-100% of assets (cut down leverage here) and sell higher out of money calls on the index to generate an additional 2-4% return. 

We may see a highly unlikely further 10% up move from here but the expiry should not be above 3600 levels.