I've spent the last week or so swimming against the tide by remaining net short into a huge pump. Last time we got one of these big upward surges I panicked into it covering a number of shorts only to have my viewpoint validated shortly thereafter. This time I've stuck to my bearish convictions. I did however put on some longs last Friday which served as a hedge against my losing short positions and helped me to weather the storm.
My uncle point on the DOW is around 12,750 and I just don't see us getting there. At the moment it's still possible the banks are bottoming but I don't subscribe to that theory. More than likely the banks are setting up to lead us lower once again.
This morning I initiated more short sales. Trying to remain conservative but I feel like that "all in on the short side" moment is close. Hopefully the day's trend (down) continues since it feels nice to be back on the winning side.
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