I hope you are all getting ready for the Christmas weekend! I am going to have some company coming soon so just a few quick notes.
The Long and Short of It
I could run through more charts and all that, but we have been looking at the same things for a while. Today was an important day I believe, and any confirmation to the upside will be very constructive going forward. That said, markets are at key inflection points that have proven difficult for some time.
-S&P 500 close over 1230 this week
-S&P 500 close over 1250 today
-Headline danger has abated from Europe
-Low volume implies lack of selling pressure going forward
-S&P 500 at key resistance level
-Low volume could cause run up to rapidly deflate should volume return
-Overall bullish sentiment surge last two days
As I planned, I took a full position in TZA (3X bear fund) when the S&P 500 hit 1250 this morning for the second time. I am flat on the position even as the S&P closed at 1254. This is a pure overbought short term play, nothing more. Overall I am constructive on this market and more upside confirmation going forward will mean it's time to be playing the long side.
Have a good night.