I did what I said I was going to do. Went heavily long the leveraged funds for the indexes NDX and RUT. I also bought the leveraged ETF’s UWM and QLD. Outside of that I also have my ICE call options. There is going to be some sick option activity next week. This long trade translates into me being fully invested long. No powder is dry. I have conviction that we will have a rally next week. After that who knows, but I’m confident in one weeks worth of a crazy move higher. Sentiment has gotten out of hand and there were a few ingredients left that needed to be thrown into the pot (see vix, see new highs/lows) before everything ticked and today it ticked.

Even smart people like Bill from Vix and More, and Adam from Daily Options Report, agree with my scary long trade.

If you missed it, this is what I said yesterday, “I’m anticipating an overwhelming move tomorrow, but its just a guess at this point. Today seems like a puff up. No technicals can tell what will happen tomorrow, but there are scenarios that can take place tomorrow which would setup trading for next week. The market is in wait and see mode. If tomorrow closes up, I’m shorting. If tomorrow closes down, I’m going long.”

It will likely be a dartboard rally where many stocks will roll up so get your lists together over the weekend and look for a buying opportunity next week. We have major earnings reports as well as it being options expiration which is always good for a move that surprises everybody.

There is more than enough things one can point too that qualify for a technical bottom here. NOT THE FINAL BOTTOM, BUT “A” BOTTOM THAT WOULD SUPPORT A RALLY.

I own UWM, QLD, ICE, and double mutual funds.

On the dips get some biotech stockage. I’ve only been saying this now for 2 months (more). When are you going to listen…..self?!?!!

Biotech is the one sector that could actually give a pullback by Friday this week or the next because its been the one sector that has been running in this crap tape. The market might just give way to relief so all the usual suspects could have big moves while biotech gives a weaker up move and/or a pullback later down the line.

If you like this post, check these out too

• September 2, 2008 -- FRPT, RT, Homebuilders, Major Indexes - Nuff Said
• August 11, 2008 -- A Huge Market Move
• January 30, 2008 -- What Worked Today 1302008
• August 8, 2008 -- I’m Outta Here A Great Day A Great Week

Thanks for reading

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