Ignore the “warning” bell (for now)

Today’s selloff was far from shocking to me. In fact, SRS gave me a huge win in a very over-leveraged, superman style trade.

But, if you think it’s this easy to call a top on a bear market rally, you’re insane.  Markets don’t ring a bell when they’ve topped or bottomed, and that’s essentially what today was…a big ringing bell.  Too easy.  That’s exactly why I think it won’t work.

All the chartists will tell us about the significant support levels that were broken and blah blah blah, but then later this week when the S&P is printing 935 they’ll have some other retrace theory or whatever else fits conveniently on the rear view mirror.

A lot of shorts got sucked into today’s tape, and if we hold on around this 920 level, they’ll get impatient, then scared.  There was just too much TIME spent under the “key support levels” , but WITHOUT falling further. That’s a trap.

Yes, we still have a massive drop coming…but at the close on Monday I was BUYING (mostly in energy names)– for a trade.