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Thursday, March 08, 2012

And Gap Closed

Who'd have thunk it?  Wishing for a backtest of the 20 day MA, and we gapped over it and filled the big red gap from 2 days ago!   I am adding some inverse ETF's back this morning ($SPY $SDS $SH $VXX $TZA), but I can't help but be a bit concerned as a bear.  I should have stuck to my How To Short The Market guidelines and let go more than just 25% on Tuesday's red gap, and layered in a day later (that'd be today).   I was thinking this time was different -- due to the sell signal on the BPCOMPQ index for the first time in 3 months.   Now I don't think any bear has the stomach for a double top...albeit that'd be necessary for a bigger correction.  I really wish we have just a smaller correction for now.

We're now at the gap resistance and 50 MA and the SPY 60 minute chart.  It's hard to even imagine how the market will move today, especially with the big employment numbers due tomorrow morning.

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