TMAP D37V26: Don't Short This Yet
Shorting the hole is a good way to get burned. If we close under 930 on the S&P, feel free to short the close. If you got short early Friday as I did (comment #3), don't cover here as you've got a position that is nicely in the money (15 S&P points worth for me) and my stop is safely set at a profit. However, I don't like shorting (or adding to a short) here as it is unlikely that we go straight down. As happened last week, we had an apparenty breakdown to 920 but we didn't CLOSE down there and bulls used the rejection as fuel for the last push north. Now the disasters that will be the long-bond auctions this week, we know the odds are very high that the market will be trading lower than it is now, but don't rule out a final push to 945-50 as the bulls take one last stab at the high.