Hey everyone! Wow, what a day we had. The markets moved up and up and up where a lot of short covering helped propel US Indexes to weekly highs. We need to be careful here with this large bounce higher since many “risk off” assets also moved up as well. Normally in big bullish moves risk off assets move hard down, but we did not get that in this case. In addition, Volatility Futures is still in a Backwardation term structure between FEB and MAR Volatility Futures which could suggest more fun and games ahead. So now is the time for Caution!! I have told our members that near term I am bullish but intermediate term more bearish and will be more willing to sell into any rally until I can see prices are held firm in place without taking out key pivot lows. Now here’s my take on the markets.
Don’t Be A Rat Brain Trader — Trade Smart !!