A Lot Going On

Yesterday was a very busy day and, for once lately, I played it rather well. I covered those XLF puts shortly after open and then went long GS, AAPL, and MON calls when the market was down more than 200 points. Yesterday (or today) was going to be the follow-through day for the rally Tuesday in my mind and the bulls had not even started to fight for the ground they had lost between Tuesday's close and yesterday's open.

Just like Tuesday's rally seemed too far, too fast, yesterday's morning decline seemed too fast as well. In the early afternoon yesterday, the up/down volume went from 3:1 in favor of the bears to more than 2:1 in favor of the bulls. That was not all short covering.

The bulls have a little more to hang their hat on this morning with better CPI inflation numbers than what we have seen in recent months, so I think I will be shopping a little more today. Thus far, I am still more than 80% in cash and only really have some positions in some call options and a few defensive stocks that I have held through the turmoil. There is no point trying to be a hero as the market decides if a double bottom on the S&P intraday low will hold or not and be the base to move higher.

If the market gets a footing there will be plenty of time to go long in a big way, but I will deploy some cash on ANSS and potentially GRMN today if the market gives me a bid.