Our last post, Friday afternoon, was just a few points from what turned out to be the bottom for this market move on Monday, and as of this writing on Thursday afternoon the DJIA is over 400 points higher.
Monday evening we suggested going long BAC (Bank of America) to subscribers, based on an important technical point we'd noticed plus the fact that sentiment against bank stocks was extreme. We felt that banks would lead a market rally.
Shorts in banks, and everything else, took a beating on Wednesday as major indexes rallied roughly 2.5% in a single day, and by Thursday morning BAC was 15% higher.
Taking at least some gains on longs purchased the past few days seems prudent, and it seems to us that it's not yet time to safely re-short.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: Traded in and out of BAC and FAS already.