Sold SPY Calls and Sitting on a Mountain of Cash

Includes: DIA, QQQ, SPY
by: TraderMark

Sold the calls we mentioned Friday as S&P 1080 at least provided momentary resistance. That's how it should work, but nowadays you can just never tell. The market is up 5% straight in a week, so one would think we'd consolidate a little before making a run for the roses.

I won't short this market since it steals the children of bears in the still of the night, but I'm content to sit on a mountain of cash and assess how the computers move the market from here. Could be a 30 minute head fake for all we know. In no way, shape, or form do I think this is a double top - not with Ben Bernanke on overdrive. Any weakness will be met with even more U.S. dollars thrown into the system. For now just a resting point after a furious bout of panic buying - some consolidation would be healthy even if its just 1 session.

With a bevy of companies ready to smash earnings estimates this week, I'll be looking to get back into long ETFs/SPY calls if we can dip a bit here. Or if it reverses back up too quickly to catch... as we've mentioned many times, buying the double top breakout north of S&P 1080 is the obvious play.

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