Even though I don't trust this down move yet, FAZ is off its lows and could break out above $30.I'll enter if I see encouraging volume.It is trading in a very tight channel for the last 2 hours or so.Just a day trade though not keeping anything overnight.

Glass half full or half empty?

My bias has been bearish for the past couple of days. Fundamentally I refuse to believe that things have changed dramatically for the financial stocks to rally this hard.After every close the case for a pull back gets stronger .Every technical indicator shows us overbought and extended.Yet much to the bears dismay we keep on charging ahead.
Personally I have made the same mistake both time I have traded this week.I have ignored every bullish set up I came across expecting a sell off.Today when I was looking to short XLF I could have easily gone long when it broke above $8.60 with volume.But I insisted to look at the glass half empty and did not act.I need to ignore what I expect to happen and trade the opportunity that comes up.
I am going to take it easy the rest of the week.I believe for a considerable leg down we need some bad news.Just the overbought conditions are not enough to curb the enthusiasm the bulls have.Even a profit taking day won't be as bad as bears desperately want it to be.

Choppy out there!

Long FAZ @ $28.00 average stop $26 target $32.Risk and reward is worth it.It is a very small position, I think Bulls will come to their senses and take profits.

Ready for anything!

Market has recovered off its lows.The FOMC announcement is in 30mins and the general consent is that we could rally into the close.If so I 'll ride the strength in the tech names like AKAM,VMW and WDC(close to breaking out).If the reaction is to the downside, FAZ,SKF and SRS are at an attractive level.

Waiting for the Fed

Dow down around 120 points right now, surprisingly the financial are still holding up pretty strong.I am reluctant to make any move until the fed meeting.If the downward spiral continues I'll short XLF which has been trading in very tight 20 cent range.SRS,SSO(short) and GE(short) are on my radar.

Due for a pull back but when?

Sitting on the sidelines while the market moves higher yet again is no fun.Discipline is the key, no one made money forcing a trade.If you really look you might catch a move for a few cents here and there.The sentiment is overwhelmingly short here due to the over bought market.DOW is not far away from the December lows and S&P is running into the magic 800 number soon.So there is resistance ahead and conditions overbought.Not to mention the volume was quite low. We'll get the same BS from Mr.Ben in the afternoon, the inflation numbers will most likely bullish and no one cares about the crude numbers. I'll short SSO,GE or go long FAZ if things turn sour.If we have similar action like today I'll try to day trade and scalp some cents.

What a lousy day!

Nothing interesting out there to trade.I am not going to force a trade like I did yesterday eventually not making money due to a lousy stop.I miss the 200points swing days.Bulls are not ready to take profits and bears don't have the conviction to drive it down.We are stuck in a lousy middle .I'll wait till the last hour to see may be something tiggers a move either way.

I have had a bearish bias so far, but I think time has come to start looking at some bullish setups as well.I was so convinced that we'll move down after being up 5 days that i didn't even bother looking for a longs.I need to prepare better guess I am still a litte rusty.