Fast and Furious...

Guess saving the release of the "Bottoms Up" facts Journal was timed just right and hopefully, it got you on your toes for a possible retest today.   We already noted Wednesday,  Paulson's reversal, may lead to a rally once digested and it coincided with markets seemingly wanting to test 10/10 lows very soon by Wednesday close.    So, was it the retest probability and/or Paulson and/or Hedging redemption fears subsiding?..who cares!

If, we had another hour of trading, there's no telling how much higher we would have shot up.    There's really two ways you can look at today's events.   One way to look at this is that it tested the recent low and even though we broke it to 818, we reversed fast back over 839 and than took off in a pretty powerful way.   Judging by the volume bars for at least 30 minutes on the SPY,   it was institutions stepping up and not just retail gambling.  Why would the retail risk such action at such a critical juncture?   Another way to look at this is that how many more of these retest are we going to face until we ultimately bottom?.   Unfortunately, we all can't wait for such as we could miss opportunities to make money.  Furthermore, we know we won't truly have a bottom until the intraday volatility is back within reason, so for now we can only look at it as a rally to start and nothing else.    A morning pullback, a slight gap down may lead to further gains on the day.   This would be much better than a gap up.

When Intel did not gap down that much in the early morning,  it was probably a tell sign that people may have started pricing in the worse in the markets.    Morning action was very strange, it was as if traders were waiting for a wash out to happen.     When we got to the lowest points of the day, volume was very extreme and you almost felt that we were close to the turning point.    When we alerted at 2pm,  there was indication we had plenty of time and plenty of room to run higher.   Simply, you have to think a true rally off a bottom was not going to whimper out and be a flat close end of day, especially since we know the market can do 500-1000 point moves.  By 3:30,  it was inevitable that everyone just did their thing to cover/ long the market to get that trade in, including the retail trader.

So what's going to happen tomorrow?    Well, we are hoping that we don't get push for another five hundred point gain day, but rather take things a little slower.    Sure, last half hour of trading brings out your animal spirit,  but we rather do things in a calmer way from here on in.     This isn't a buy and hold market, still.   The best way to play still is the SPY-SSO-SDS and taking on the pullbacks in stocks we are following as witnessed by the action in MYGN, FSYS, EBS (even had an offering).