2009 Starts With A 3%+ Rally In The Markets

Let's get one thing straight with all these ultra-bull folks out there in the media; one day doesn't make nor define a new bull trend. Could 2009 be a great year for the bullz; more than likely after the 40% drop last year. But, at the same time, I still think we are right smack in the middle of a bear market rally which shouldn't last past February at the latest. From there, I think there is more downside in store for us. Whether we break the October/November lows is still in question but all things considered, we are not going straight up from here until next year.

Okay, with that said, I decided to buy some SPY puts this afternoon following three nice up days in the markets. After three consecutive closes up, the chances of at least a one day reversal are fairly high, not to mention that we closed near my 930 resistance level on the S&P.



So, just to clarify, I am predicting at least one down day either Monday or Tuesday next week before I exit these puts. As always you can follow my trades by subscribing to a Trading Subscription on the right hand side. We've already had some very profitable FOREX trades this year! Happy Trading in 2009!