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I was mostly in EWZ and had no index longs today despite the move up. EWZ, however, produced a nice result of 3.5%, but mostly in the range of 2% for my accounts. I dumped most of it today near the close, however, I do have a small amount left over that I wasn’t fast enough to get executed.

I can’t imagine traders wanting to go into the weekend long considering the month and half we have gone through. 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.

Gold is moving and looks like its going to make another move in the short term, ie tomorrow, which has me concerned. Oil looks like it can make another thrust tomorrow as well which won’t be good either for the market. From my observations Fridays can be exaggerated and overdone type days that appear to set the tone for the next week when in reality they tend to make dumb money do dumb things. The smart money is looking for that VIX above 30 and indicators like the McClellan to be in a certain range and whatever else your market catastrophe indicator du jour is to give a sign. BTW what is your market disaster indicator? Say it in the comments.

If the market is up in the morning, lets say on the back of GE earnings (which were shit last time around), I might be putting the short on in anticipation for a red close.

Tech is starting to show signs of interest. Biotech continues its move. I want to buy Biotech on days that the sector gets nailed. That would be “goes down” if you don’t understand my short hand lingo.

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