We saw the market turn on a dime Thursday, a reversal which is being confirmed today. We immediately lifted our hedge and reestablished our UPRO (SPX) positions. Readers who took our advice and sat out the downwave came out better, without the hassle and without the expenses. It remains to be seen what will come of this, but these two days look fair to end this bit of foolishness. Plenty of professionals (some known to us personally) will be gnawing at their entrails since they did the same thing we did. Well, we did it to prepare for a cascade like 2008 and we don’t regret it. Meantime the Dow Theory is all systems go and this market will continue to frustrate bears.
Over the weekend a more leisurely contemplation of the market and some analysis issues. Don’t hang up.