The market rallies again today as more people are kicked to the curb! It seems that nothing matters to the market, as it rises again, and again, and again, etc... etc... etc... Are the Bulls snorting crack again? What is it going to take for a serious correct to happen? I'm speachless at this point...
I'm now underwater on my short positions, but I'm still in them and will hold them until option expiration if needed. I still believe the market will go down next week. Tomorrow should be a flat day, as rarely does the market sell off on a Friday. Just another consolidation day before the next move occurs.
Since today didn't sell off as expected, and tomorrow won't likely do so either, I'm inclined to believe that 102 is about as far down as I can see the market going to before expiration. Of course all this changes if the market closes above 107.65 on the spy. Then we are off to 110 in a hurry! However, I still don't believe that to be the case. The news is still bad, and this rally is running out of steam.
Can it go to 110... yes, of course it can! But, isn't everyone expecting that now? Today squeezed the bears hard. Will next week butcher the bulls? I can't answer that for sure. But, I'm staying short, as I think the forecast is just off by a day or two... not wrong! I believe today was another trick to lure in more bulls, and scare out all the remaining bears.
There are some strange things happening in the market right now. For one, all the major movers were down today while the market was up. Goldman, JPMorgan, Apple, Google, Qualcomm, BIDU... all down! Why? The news was good right? Only 10% of America is unemployed, so the rest of us all have good jobs (Yeah, right!).
This rally was all about the dollar... that's it folks! Nothing else! Not Alcoa or the unemployment numbers caused this rally. The dollar tanked hard today, and that is the reason for the rally. The PPT is at it again. They pushed the dollar down to keep the market up on the bad numbers. It's just that simple.
However, something else happened today that is really weird. The TBT rallied hard about midday. It rallied from about 42.70 to 44.30... a huge move on the treasuries. This is really negative for the market. Is something big going to happen? I don't know, but something smells fishy too me!