Nice Ride

The day was not at all what I had been expecting….but it sure ended that way! A weak dollar overnight got things rolling. BBY earnings report juiced it, along with QCOM, and then the Jobless claims report was the icing. We gapped up above previous highs, sold off a bit, consolidated then rallied. All morning it was buy the dips. But the buy-on-the-dip crowd was slapped hard by the end of the day. I’m not complaining, but I totally don’t understand today’s action.

I did panic some and sold off some TZA calls for a small loss and some TZA stock for some small gains….ending at breakeven. I continued to hold the remainder and was rewarded by the end of the day. I’m still holding overbight along with VIX calls. I hope Friday morning is better than today.

And look at that uptick in volume in this 15-minute chart of the SPY. It just repeats what has been happening all month….up moves on low volume and down moves on higher volume.
Advance/decline volume went from 4:1 positive down to -2:1 negative….that’s a wicked drop. The question now is this a precursor to something or just a late afternoon anomaly? This evening futures are down slightly from the close, but they were last night also. We’ll have to wait and see what Asia and Europe has going….and maybe Trichet from the ECB can say something stupid again.

So it’s Friday before a holiday week. We’ve got GDP and Consumer Sentiment reports…not much in earnings reports, although the ORCL report this evening may carry over into the morning putting a damper on the QQQQ. Trade well!