Well something happened in the last hour of trading yesterday. And it was very unusual…the market rallied:) Almost 100 points on the DOW although the breath was about as bad as it could be for a 100 point day. But I will take it. And just waking up this morning I had a nice surprise. Markets up 3/4% 40 min before the open. And what is most important no fed speakers today. They are in a meeting trying to figure out how to not raise rates without looking like fools! But since there is no way out of the box they have incredibly put themselves in they will have to go with the rate hike.
Now saying that if your short and have been fortunate enough to make some profits on this pullback my suggestion is to get out of your shorts on the open. Take your profits so that you can relax a bit going into the fed meeting. If per chance the fed does not raise rates this market is going to be up 500 points in the blink of an eye. If that happens and you are still short relaxation will be out of the question. So do not get greedy and take your profits this morning on the short side. (my humble advice)
Its been a touch month or let me say a tough year for traders. The swings have been breathtaking. I saw a stat this morning that is hard to believe but the source is impeccable. Stocks under 1 Billion Market Cap overall are down 49% year to date. Thats a number that really is hard to fathom. It shows you a good perspective on what this market was like this year.
Well I am long. I have a portfolio of 12 stocks, I have on swing trades, and I have on mean reversion trades. So this bounce is welcomed by me. I indicated I thought this pullback was a buying opportunity but the pullback was much bigger then I thought it would be especially after the 300 point down day on Friday. I still think this rally is good until year end. Not straight up but should be a nice rally to catch on to. Seasonality does not get much more positive then what we have now.
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