Boy, am I glad for taking early exit on my shorts on Monday. Sometimes it's better to be lucky...
First I did this:
XHB is setting up nicely. Started a position with easy stop under today's low. BOT: 26.20
I am seriously considering to close my QQQ short early. That would be "breaking the rules", cus neither stop nor objective are hit.
Out of shorts.
(Including SRS at loss, and final piece of ZSL. Silver short runner failed, but total profit from "Silver Bullet" that started on 12/14/2012 here is quick 8% in 2 weeks. Good)
Holiday or not, if this doesn't fail - we have a valid reversal. A/D, VIX, bonds - all in agreement.
IWM strong, homebuilders(XHB) lead, emerging markets (EEM) didn't even blink, retailers (XRT) reversing strongly. I thought post-Xmas retail is dead, guess not.
I'm not doing anything today, but SIL is the one to watch
The day is not over, lets see what she can do
This is Santa Clause Rally. No?
O, I know. This is sideways consolidation, because of Cliff. No?
Short squeeze coming? With 2.7mil cars on ES - there are no bears to kill. No.
How about 100 Samurai aka QQQ. This chart is a BBands madness, but I see a brick wall resistance at 66 and no strong support.
Inflection point? It does't get any better than this. Yes.
Short via QID at the moment
Later that day I bought EEM @ 43.50 without any specific reason. It was just stronger than anything out there and I had too many shorts. I wrote here (link):
"Buying EEM. Stop under 43.
Lets see what she can do"