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A really nice move today. Did I know this up day was coming? Yes I did. It was in the charts and indicators. The only accolades for calling it are in my account and that is all that matters to any of us anyways.

What am I doing now? While everyone thinks we have bottomed, I think we sell off again.

Probabilities, based on the charts, say we will make new lows and we will give back today’s candle. It should happen within a week or two. Depending on where we go on the downside, we should see a rally. That is it. Most of the time after that new low is made we get a really significant rally, but I don’t want to think beyond the new lows I think are coming. Lets remember where the trend is. Its down.

Today’s action was nothing more than a relief rally. People will say otherwise, but its not more than a relief rally until its not. It happens all the time, for years. The trend is still down.

What I did today

I tweeted all my sells this morning (and I tweeted all my buys yesterday too if you are inclined to swift through them). I was out all by 10:45am. Despite me looking for a short squeeze I was cool with 2.4% gain in the RUT long, and the 5-6% on the FAS and short TZA. I went and ate a great sandwich and I didn’t care. I did nothing else the rest of the day until the close.

At the close, I went short the 2x NDX, RUT, SPX funds in anticipation of the patterns mentioned in the charts. Relief of oversold, close of exact highs, trend down, and historical repeatability.

The one thing I have some regrets about were all my call positions that I sold on yesterday’s morning pop. The sells were great. I wish I rebought some of them at the close. Particularly F, FITB, GOOG, and QQQQ.

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