Day Two Rally Ends Without Auto Bailout

Another big rally day but frankly it was a little boring for my portfolio. I have both puts and call which seemed to cancel each other out thought I have adjusted myself much more bearish short term. I think back to back rallies over 3% are very unsustainable in the short term. Notice on the S&P that the market rallied right into my weekly and daily resistance ranges which led me to take on some more index puts near the close. I think tomorrow we will see a modest sell off, unless we get some great auto bailout news that sparks the markets.



The CHF snapped back lower as I predicted earlier this morning. I have adjusted my stops to lock in the profit right now and still am holding out to a target of 1.17 or just a little lower.



The CAD had another great day following its massive shooting star pattern with a near 300 bip move. I think we might see this pair move back up slightly during an equity market sell off, which might be a great time for some of you out there who missed this to get back in the short side. Target around 1.21 or lower is very reasonable.



BBBY is another great short trade. A rally of nearly four up days in a row have lead me to think this stock will show considerable weakness very quickly. My short term target with my puts is to the $21 level.



CBRL is on my short watch list this week. I was about to short it on Friday but decided to wait and thankfully so considering the 5% jump today. We should all wait for a bearish candle pattern before we go hog wild shorting this as it still may have room to move back near its 200 day moving average.



Tomorrow should be interesting to see how the markets react to the auto bailout which I 100% expect to see in tomorrows news headlines at some point. Will we sell off like the other bailouts or rally up further leading us bearz with another opportunity to short like our life depends on it? Happy Trading!