This bear is seeing a big, fat bounce coming, and he couldn't be happier.
A surge higher is just what the doctor ordered. My view is that the market will push higher – – and the key question is how high – – and then resume its fall, gaining speed on the way down.
Some people – the "1120 crowd" – see the market pushing to new yearly highs. I don't. Looking at the chart below, I would anticipate the /ES getting up to the 1060-1070 range.
The other "tell" for me is GLD. It would be confirming evidence for me if GLD got up to about 102.50. I personally would be much more comfortable getting aggressive on the short side at that point.
In the meantime, all my shorts are still in place, but I'm going to try to balance things with some well-placed long positions. But, I say again, I am thrilled at the bounce that is going to start happening at the opening bell, since I think a tremendous bull trap is in the process of being set.
