So far, so good

I can’t ever remember the markets actually doing what I thought they would do! The S&P put in a doji day,as did the Dow, one red and one green. They both are still hanging above their respective 200 day moving averages. Considering the ugly news we had in the morning, bad housing, bad building permits and bad FDX guidance, you would think we would crash. But the markets persisted and came out a winner.

Oil had some bad news also with an inventory build, but oil shook it off and moved higher. My UCO position did well accordingly.

This rally has happened on decreasing volume, which by many accounts they say, is not a real rally. Technically all looks in place to keep on moving up…the break of the 200ma, bouncing off fibonacci retracement, MACDs moving up and all kinds of other indicators. But, and there’s always a but, the markets are very news oriented, and it doesn’t take much of a news blurb or even a rumor to send them tumbling down…again.

Was today enough rest? I don’t think so. I’m still looking for another breakeven to down day and again I’m not looking for much, just a little rest. So I’m mostly long with a bit of hedging via TZA. I’ll see how long I hold it.

See you in the trading arena!