Slope of Hope Blog Posts
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Originally published on MPTrader.com.
Disappointing day for bulls today as what looked like would be a soaring open when futures opened Sunday night on news that Spain was seeking a bailout, quickly vanished as the US market open came about.
I think for the most part, that this market has grown tired after registering its best week of the year last week, and for it to continue mounting gains day-after-day is quite difficult, and the fact that it lost momentum just below key resistance levels, leads me to believe that recent strength is more of a dead-cat bounce than anything else. To prove me wrong, the bulls will need to cross some key price levels first (most notably 1335 first).
Yesterday, while I was watching every asset class on earth explode higher, I was in Don't Get Killed mode. Given the fact that the bulls completely and utterly dropped the ball by this morning, I went back into the mode I greatly prefer, which is How Can I Make the Most Money.
In spite of that, I'm still playing it safe. I covered my large short positions, and I'm presently only about 35% committed with the rest in cash. I do have 20 new positions that are a single mouse-click away, which will goose me up to 50% committed, but I'm in Wait and See mode (who knew I had so many modes?) since for this particular moment – we might be shoring up for somewhat higher prices intraday.
The good news for me is that this whole Spanish Bailout was about as hugely successful as the Facebook IPO. This might be a sneak preview of the bearded one's announcement next Wednesday, which might – – as with Spain – – could turn into a very fadeable non-event.