TODAY: Well, SPY gapped above 153 and never looked back - news out of Europe fueled the fire for this rally - this on the backs of shorts covering. This move was based on solid, even strong, volume.
IYT once again was strong, as well as XLF. Well honestly... everything was fairly strong today. It was interesting to note that GS, one of the market leaders IMO, was up almost 2%, but ended up only 0.5%. This relative weakness is interesting - but I feel that is me SEARCHING for a reason to be short - clearly, this was an extremely bullish day.
TRADES: today was a decent day, although my SPXU took a beating.
Trades closed: SPY calls +8%, MTG plus 0.75% FRAN +0.8%, and EBAY for scratch.
These gains helped me fight the paper losses below:
Open Trades: SPXU (-3% now), MTG (very small, but is now down 10% AH), INTC (-0.5%), GS (-0.7%), LNG (-1%) and VXX (-3%).
Again, I am not really worried about any of these trades except SPXU, if we dip tomorrow, I'll likely sell for a 1-2% loss. MTG is a very small long term play - INTC will pull back, because that is what it does - GS looks heavy -LNG was relatively weak today considering the market - and VXX will be added to as we approach summer.
THOUGHTS: The market today was strong, and I believe the low was established last week. We will likely continue our slow drift up into the April - May time frame. A lot of people are targeting 1570 on the SPX... so that will likely not happen, either much higher than that is a good target, or this move will fail before we hit 1550-60.
GAMEPLAN: I will continue to play long and short scalps, with minimal heavy swing trades. I will error to the bullish side, and focus on lightly selling rips, and more heavily buying the dips.