Despite the small rally the past two days, there wasn’t a single short that we had to get rid of. So it is obvious the small rally on weak volume is just a happy “Santa Claus” rally. This might be good long term for those of us who are still carrying a lot of big-winning shorts that have big gains for the year already and are still showing no signs or putting in a bottom. This means that if we do continue to rally on lower volume that we may see this market reverse as it finally realizes it can’t gain any momentum on this rally. So if you are still short some of our shorts that have big gains, make sure you don’t cover it all in. Make sure you are doing what I am doing–hanging on to a little for some potential huge gains. There were only two shorts in the scans tonight (STRA and SON) and one of the short candidates I have had my eye on to go short for the past two weeks. However, it cracked a little today but the stock closed higher than where it opened, volume was EXTREMELY low, and BOP went from red to yellow. This is NOT AT ALL what I was looking for on a break. So hopefully it can rally a little bit from here on low volume and then reverse again this time closing near the lows, on heavy volume, with red BOP. For now, there is clearly nothing safe to do with this stock or SON. Cash is still king, unless you are holding a ton of our shorts before the September-November thrashing. If that is the case, your shorts are king. For those just getting involved, cash is king. There is no uptrend or downtrend clearly evident. Short term trend is lateral, sub-intermediate is lateral, intermediate is down, and long term is down. So we know the big trend is down but for right now the market is in no-man’s land. Cash is king, for now.
new short positions: none
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