I never thought I'd be so delighted to see the GLOBEX reverse higher. When I woke up (at 6 a.m. – I "slept in" this time, since I really needed it) the ES was down 5 points, which surprised and disappointed me, since it had been very firm the evening before. Just a couple of minutes later, the ES was up 15 points, and obviously I was wondering what happened (the constant talk of an interest rate cut was the obvious guess). But the Fed's announcement related to commercial paper purchases did the trick.
As you know, I am positioned very heavily for some strength. I am looking for the Dow to add 500 points before I get serious about shorting again. That's only 5%, and hopefully it won't take too long to accumulate. I have never, ever had so many long positions in my entire life (a wide variety of battered issues, plus some very large index call positions), so I'm looking forward to a nice bull run here. At the same time, I'm hanging on to any shorts that "survive" the run. After all, some of these (like Bank of America) are still good short/put positions.
My wish for you, dear reader, and myself, is that the market is just nice and firm for a few days. It is one hundred times easier and less stressful to trade, and I know we could also use some peace and quiet, just for a little while.
