Update On Today’s Market Rally

While nothing is impossible, if you would have asked me this morning if I thought the bulls would make a mega rally off its lows and rally about 35 points on the S&P to close barely in the green, I would have thought you were delusional. But that is what we got today, and honestly, I couldn’t have asked for anything better. This was exactly what needed to happen in the markets today, to get the bulls off their butts and back into the game.

For awhile there I actually was wondering if I was ever going to get that much needed bounce to reload my short positions on, and what we got today should lay the foundation for the bounce to occur. If you read my post from late last night, you will see that I got 51 short setups, and growing by the day, of which I would like to short – I’d do everyone of them if I could, but managing 51 positions simultaneously doesn’t sound like a load of fun to me.

So from here I am looking for the market to rally upwards of 4-6%, before I start aggressively adding new short positions to the portfolio (currently I am 100% cash).

Continue Reading.

On a side note, I was able to have a little fun today, jumping on the SPDRs wagon with scalp of SPY long at 105.59 with a stop-loss 104.8. I managed to get out at a predefined area of resistance at 106.32 for a respectable profit. Outside of that, I had nothing else going on.

I’ve updated the chart from yesterday on the fib-retracement to incorporate today’s huge intraday sell-off and rally. Essentially the Short-Zone that I outline below has shifted downward about 5 points (i.e. the 50% and 61.8% range).