IMO I think what we saw today is a classic bear market rally. It’s rare to see a market move to the downside like that without a break. I played the SSO today, got in at 62.50 then it went down to about 61.15 and I thought uh oh I’m screwed. I had appts this afternoon and was relieved to see that trade work when I got home. I think this rally has some legs left to it and then back down we go. I am planning to take proceeds from the SSO trade and put back into SDS and ride that thing down. We will be in a process of hitting and testing new lows for a while here. The bond insurance bailout news is big IMO but it only means that we might avoid a total systemic meltdown, and hey I’ll tell ya I’m all for avoiding a total systemic meltdown. The unwinding process is still going to be long and painful and the world markets are truly signaling a significant slow down.
