Mood change.

Posted on Nov 19, 2012 by in Letters

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=6&dy=0&id=p18894193176&a=214966864

The market has been clearly oversold lately, so contrarians, short sellers and mischief makers, each trying desperately to get a seat before the music ended, drove the market up over a percent in the first two minutes of trading, and then the slow movers drove it even higher.  While explosions like this often result in the initiation of trends it is for certain that they initiate trades.  so we initiated some trades.  Bought the silver; the Qs; the TBT (short TLT); took off part of our hedge on the SPX (SPXU) (at a profit).

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