I was short going into the close on Friday and added to the few positions that I held over late in the day. Needless to say my day didn’t go well and it would have been worse if I hadn’t hedged my whole portfolio with a IWM long for part of the day when I noticed the 5-min on the Dow pointing straight up. So now I’m trying not to let my bearishness get in the way of partaking in a rally that I think is doomed to fail, but I just can’t see any reason to go long. There’s nothing worse than marrying yourself to one side of the market, only to see it go against you short term, then turn around and go exactly the way you thought it would go. This feels like deja-vu from last month.
On a day when Citigroup was plastered all over th enews you would have thought volume on the XLF would have been considerably higher than it was. This market is not going anywhere without support from this industry. I just with the government would quit with all the smoke and mirrors and let the free markets be free.