On Friday, I called for a big rally in OIH and a large push higher in equities. Little did I know it would be this big. Nearly 1,000 points up on the Dow! The stock markets – both up and down – are starting to resemble science fiction.
This will be my last post of the day. I will say that the NDX seems terribly overbought to me, having traveled an entire retracement in a mere two sessions. I would expect some softening in this very near-term.
As for equities in general – – I said very plainly I was looking for a rise "between 1050 and 1100" on the S&P. At this rate, we'll be there tomorrow! (Although I really doubt "this rate" will continue; today was, after all, a relief rally with huge, pent-up demand). In any event, the opportunity to get really bearish again won't require a lot of patience.
If you look at my watch lists, you can now see a mix again of both long and short issues (whereas on Friday I was 100% long). It will be very interesting to see how long this rally lasts. This might be the shortest-lived wave 4 I've ever seen.
Anyway, I hope you had a profitable day, and I'll see you in the morning.
