http://www.stockrake.com

I was very short heading into today. I had no money leftover to be any more short. We have now closed below an important level. Where we trade from here will determine if we get a trend down this week or a play to the long side. The market required a surprise move and we got it today.

I executed my shorts somewhat poorly today. Well some might enjoy making money, but today would’ve been a golden pot. I covered alot of my high beta shorts (put options and what not) on the gap down in the morning. The reason I did this, was that I thought maybe we would sell off on tomorrow’s Bernanke speech instead. Right around 9:45 I was looking right as the market started to rally. Like I said I made money today, but it was a fraction of what could’ve been. I still was more than 50% short via 2x index funds at 10:45. I cut my NDX position in half there, but kept a full inverse RUT position.

At the close I put back on FAZ, the money I took off in the index funds I put back on (100% short there), and MGM puts. Looking for a slight extension tomorrow or even another shocking drop.

Based on the way things are setting up, I’m looking at a short in AAPL, GOOG. If the market does not selloff further, I will look to go long some things, but my personal feeling is that the market wants to go lower and closing below this level in the chart is an important item. We are resting on the 21dema, but things look precarious. Stocks like JPM, GS, could be on the cusp.