The uptrend reasserted itself as we predicted it might in yesterday's report. This stopped out our AAPL short hedge for a small profit and gave a boost to our CLF and LFL long positions.
We will be adding long today as the charts look good here and volume was strong marking a clear accumulation day. We aren't, however, completely confident in this market as there are a couple of cracks showing.
The Nasdaq failed to make a new high on yesterday's rebound and talking heads on CNBC quickly turned cheerleader, giving us the impression that contrarians may see an opportunity to hit back today. Perhaps we are just nitpicking here, but we will be a lot more comfortable embracing this rally if we get both follow through and more market participants get antsy, as we admit we are here.
Disclosure: long clf and lfl, covered appl short