How else can you explain the action in the markets today? Trend day up. I think non-believers were shorting in the first half of the day….and then covering in the afternoon….yes, I think it was a short-covering rally, but, as I had to change tactics today, it’s hour by hour in this market.
Today after markets gapped up, I went long QLD and found a few stocks that looked enticing: JRJC ARM ACAS. I bought all my longs because they were approaching or at the 8ema on their daily charts. They all did well. But as the end of the day approached and they took off, I claimed my profits and closed them out. And, since the market was looking like a 1999 blowoff, I nibbled a short position buying BGZ, the large cap 3x bear fund. Even if we get a continuing gap up on Tuesday, this was a quick up move and I’m looking for a quick move down just to compensate for the move up.
Now for the case of a continuing bull….VIX was down today, almost going sub-30. And, maybe last week was enough of a pullback to get all those money managers back in a buying mood. And, maybe tomorrow’s Building Permit report and Housing Starts report will be better than expected. So….I may be stopped out of BGZ real quick and getting into BGU. 
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