Crushing Rally!

Posted by admin

May 4, 2009

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Well, I think the bears are finally running for the hill (except ME ). I’m still holding WFC July puts in one portfolio and loaded with FAZ long (short financials) in other. As I’ve said before, I expect to hold FAZ for quite some time, hopefully till end of the year 2009. The boat is loaded on the bullish side of the trade and sometimes it pays to be on the opposite side of the trade. I think we might continue upward upto 950 on $SPX which happens to be at the confluence of 200 DMA. We will see…

If there was any doubt about this being a bear market rally, everything was laid to rest by today’s crushing rally. Now it needs to be seen as how much the bulls can push before we stall. If you look at the charts of the major indexes, Nasdaq has been on a tear since hitting the bottom in early March. Today, Dow Jones ($DJIA) and S&P 500 ($SPX) broke out of inverse head and shoulder pattern with some convincing volume.