It took one such a day…
It was a huge short squeeze that wiped out the bearish sentiment and excess shorts. It was a manufactured move in which the core sector, financials couldn't make a higher high while the most of the indices and sectors did. Volume was low for a 7% day. br /If you were short heavily like me, there was nothing to do but reduce your exposure as the market rallied. After the midday pause, it was obvious that there would be another attempt to ramp it up, to close near the best levels. There will be another attempt tomorrow which I expect it to fail. We will probably gap down then rally into midday to reverse later. I expect it to be a doji tomorrow. br /br /I traded this market on the short side since mid 2007 all the way down to 670 where I had covered my previous positions. Charts have been my guide, they never lied to me. Charts of many sectors and indices are telling a long term story that doesn't fit with the current sentiment and action. Therefore this shall pass soon, just like a day following night, spring following winter. br /br /Starting at 720, I shorted it upto 800 on Fed day last week. I had to close those positions I opened on Fed day as SPX broke through 800 today. I will put them back tomorrow, probably midday. From Dow Jones Transportation to Health-care to Bio-tech to Nasdaq-100 , many sectors and indices have recently broken their long term trends and there will be consequences. I had posted some of them before if you care to check now. br /br /Tomorrow will be another day but it will be a quite different. Different than all the days since this bear market began. Tomorrow we all know there can no longer be intervention. No manipulation or any kind. Different in a sense that from here on, it will only be me and the market.div class="blogger-post-footer"img width='1' height='1' src='http://res1.blogblog.com/tracker/2192317321691025209-7445759825717548110?l=xtrends.blogspot.com'//div
