Huge rally going on. Market internals are overwhelmingly positive as the averages are up 4-5%. Banks stocks up 20-30% in an hour. Now we wait to see if this market is faded. When an opening is this strong it is axiomatic that the gap must be closed. All the buyers who got in should be taking profits which gives shorts the gumption to establish positions. And, of course, the rally will be used by some to get out of loosing positions.
Flustered by these riches it is difficult to really know what to do. Sensing a rally the game plan had been to creep into long positions with protection using inverse ETFs. Not wanting to fight the tape I am now exposed on all long positions. Now, we wait and see who’s the boss. If we get several days of this I am all-in.
