This market has me perplexed today. There's no good macro news. Gold is at another record. Oil is up despite what looks like an increase in supply coming from Libya (congrats Rebels!). Yet we rally. We have been losing steam throughout the day but there is definitely a bid under the market. Even though there are some bullish signals shaping up in everything from sentiment to technical analysis, I'm inclined to short this rally. Some think we'll hear good news (hints of QE3) out of Big Ben on Friday so that could be a reason we're are up here but I'm skeptical. Best thing to do is be in cash but if you're adventurous, put some shorts on. I'm long the Ultra Short Oil ETF (SCO) and the Gold Trust ETF (GLD). I'm short the NASDAQ 100 ETF (QQQ). If we rally big into the close, I'll be adding to these positions.
This is not a recommendation to buy ir sell any securities. DAK was long SCO and GLD, and short QQQ though positions can change at anytime.
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