Market Notes

I covered all my S&P shorts past Friday. Needless to say holding the shorts for the last four weeks turned out to be a profitable venture. Do I think the market is not going down from here? I did not say that. But the degree of confidence in market direction for short term has decreased. Meaning the market could continue its current rally. However for short term, I see some volatile swings in the offing and you have to have nerves to digest them especially if you have position trades open overnight. That said, there is still a good deal of confidence that trend is still down for long term at least for now. Why not take some profits off the table and play with the extras on other trades I feel more confident about? In fact I will cover one such trade in the next post following this one soon.

Going back to market direction, if oil keeps going lower and dollar keeps moving higher or even remains stable, this will add to the impetus the market needs to continue its rally from here on.

Good luck
Krish