You guys just kill me. Seriously.
If the market goes up one or two days:
+ All the bears vanish (your host notwithstanding);
+ The guys who love to be bulls get really loud about it;
+ The Hun shows up.
Just two days ago, everyone was convinced – absolutely convinced – the S&P was heading toward 1400 or 1450. Nonsense. The bull run ended in April, and the bears are back in control.
Just as the bears could only get two or three days of relief during the Bernanke-fueled fraud-rally, now the bulls get a taste of their own medicine.
While the market was lurching higher, and all of you were panicking, I made my Come to Papa post and put this at the top of the comments section:
"The speed with which some Slopers become scaredy-cats requires high-end scientific instruments on days like this. Incredible. "
There was even talk of "smart floor traders" (ha!) talking about 1650 on the S&P this year. Jesus, guys. What's with you?!?!?
This is not to say it's a free-fall down to zero. God knows I wish it were, since that would be glorious fun, but there are going to be fits and starts. I have been very, very light until yesterday, and thank goodness, because I side-stepped almost all of that fraud-strength. But, as I made clear yesterday, I am short 75 (out of 200 targeted) positions.
Now, as I've also made clear, some stocks seemed ready for a bounce, and I am long 16 stocks now, and I imagine at the opening bell I will wish I had 16 fewer longs than I do right now. Such is the price to pay for uncertainty.
My point isn't that the market is now going into a free-fall. As I'm typing this, we might be seeing the lows of the day – who knows? But just as Bin Laden's capture marked a top, the Bernanke ego-stroking-fest yesterday might also mark a small top, and the cold fact is that out of the 1000+ stocks I look at each day, maybe 10 of them look like good longs. There are a ton of delicious-looking shorts out there, and my view is that, starting on May 1, the torch was passed to the good guys.