For the record my bias in trading is to be short and I am short CCI which I entered today, but I am only looking for $2 and I'm out and I am still short CTXS. I still believe we are due for 5-10% correction in the near term, say 1-8 weeks, based on my IWM chart which I posted here a few days ago.
Saying that I feel compelled to show the weekly charts of DIA,SPY. I already gave my analysis of IWM and believe a new up trend has begun based on the 50 week turning up. This is to provide further evidence that any weakness will only be short term until certain price's are hit and that price would be the 200 week m.a.(yellow line) I have marked X 's on both charts where the 50 week turned up in 03 and 09. Notice there was no significant or prolonged weakness until the 200 week was achieved.
I have no reason to believe this time will be any different. One thing I have learned in my 7 years of trading and looking at squillions of charts is that patterns repeat, not exactly but very similar. From my IWM post a few days ago I illustrated how long that equity has been repeating itself, so why wont these do the same? At some point they will fail and new patterns will emerge, but until they do fail might as well make money off them. One further thing, look back at the $SPX and the 50 week, its very reliable for putting you on the right side of the trend and in trading that is all that really matters.
One could simply by some call leaps for a hedge if they are having a hard time getting long and prefer to be on the short side for our own individual views.