So Long Shorts

The last of the mohicans.  My remaining shorts were covered today.  What was my cue for covering the rest and locking in the profits?  Was it some moving average crossing another one?  Was it this level was broken or that support line held?  Was it some big news event?  What made me cover all my remaining shorts today?  Pretty simple actually.  Ben Bernanke was on television for a long time today and the market was up and stayed up.  It’s that simple.  That’s what an oversold market looks like.  What caused it to go down before is no longer working.  A week ago, Ben Bernanke on television along with all the politicians asking questions would have caused a 200 point drop.  Instead, we got a 200 point rise in the Dow Jones.  Amazing.

The part I don’t have an answer for is how long the rally will last.  I had a caller on my radio show today ask about his 401-k.  I told him this was a technical bounce and I wasn’t changing the 401-k allocations that I oversee.  They are still no equities and a little bonds but mostly cash.  This rally could last just a few days.  We don’t know.  But, I still see no panic out there that would cause me to get more bullish for an extended period of time.  I’d look at this as a 2nd chance if you didn’t sell in January.  I’d also look at this as an opportunity to buy some inverse ETFs at lower prices in the future.  That’s it.  I will however spend the rest of my day looking for more potential trades and pretty charts.

Television

I’ll be on the Fox Business Network tomorrow morning at 8:10 a.m. & 8:30 a.m.  Make sure you tune in.

This post published at www.karleggerss.com

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