Whew!

As expected, we had our retrace this morning. I must say I'm very lucky to have seen it coming. Selling my SKF yesterday afternoon was a damn fine call. I think that bad boy was down something like eight bucks this morning. Multiply that by a chunky position and you get the idea of the sort of pain I sidestepped. I actually felt guilty for having sold it until I woke up and saw the futures up huge in the AM.

I'll admit, I was a touch surprised by the strength this morning but it's exactly what I want to see. This is typical of a retrace to a broken trend line. Same thing with oil yesterday, retraced in a straight line.

So with the market up over 12,600, I started selling. Have a handful of shorts touching the underside of their trend lines which I have added to. Started buying back my inverse ETFs. SKF I will scale back into a hundred shares at a time.

I was down at one point almost 2.5%. Now just down a touch. If I am correct in concluding that the advance has ended, I'm going to look like a genius. If not, I will retreat again.