Waiting

Market went nuts to the upside again yesterday. I limited my short exposure early and saved myself a lot of pain. Then I took a nap and went kayaking.

For now, market participants are back to believing in Goldilocks and the Easter bunny. As to how long such fantasies prevail, it's hard to say. On one hand we have retail and housing stocks breaking out. Financials have stopped falling, for now. On the other hand I see a lot of juicy short set-ups. Lots of head and shoulders tops. The bear is not over.

I still think our problems are too big to bail. Is the Fed is going to monetize trillions of dollars of bad paper?