8 Straight Days: March 18th, 2010
March 18, 2010 – 3:15 pmAn astonishing 8th day in a row can be chalked up in favor of the bulls.
This is absolutely ludicrous. Granted I haven’t shorted anything in a year, but this is getting a bit out of hand. For some of you who remember a post I wrote about two or so weeks ago, I stated that I was planning to go short around the 1120-1140 range on the S&P. Thank goodness I didn’t do that. There really was only one central reason why I didn’t short, and it was due to the microscopic volume. Shorting a market on low volume never really works out for the people on the short interest side…..atleast most of the time.
I went back to do a little digging on the S&P and found that we are fast approaching a key Fibonacci level on the S&P 500 with a good amount of resistance. With this being said, I really do want to short, but the market just keeps chugging up to he point where I don’t even think the bulls know what is going on. All in all, I think I may actually start purchasing some in the money put options or bear spreads as we approach that 78% retracement but until then I will just be hiding in my bunker.
If the market kept moving up even past that Fibonacci level, may God help us all. The world as we know it is still in a recessionary state, many countries are on the verge of bankruptcy and there are still a on of problems throughout the economy. A return to the 14,000 level on the Dow is be impossible. If that were to happen, I would stop trading.