Frankly I don’t know and don’t care what moved the market today. I’ve grown tired of having every news from Europe to shake up the market. The bottom line is that SPY was up over 3%, and the Dow over 330 points; and that the market finished on HOD.
The bears definitely got run over by a freight train and got taken to the cleaners at the same time. Fortunately, as stated yesterday, I was running thin on my SPXU shares. So I didn’t feel that much pain today. Still, SPXU was down over 9% with my portfolio down some $1,000. In the process I’ve also grudgingly added 300 shares of SPXU. Frankly, the expectation of a 2008 style sell-off that never came has become something of a broken record. So the stake had to shrink accordingly.
The 200 day EMA on SPY was reclaimed today by the bulls. As a matter of fact, every major MA was reclaimed by the bulls except for the 200 day SMA. And in spite of the monstrous rally, the RSI on the 60 minute was only 64, far from overbought. And the 3 month up trend line was tested yesterday and confirmed today. Plus, SPY is now only 1.5% away from turning the year positive. The odds are really against the bears.
I’m sick and tired of trying to be a hero from the bear camp. The most I can do now is to just keep my positions small, just short of staying 100% cash.