Big move up in the broader markets today. SPY gapped up and broke out above major resistance to put in new highs for 2009. DIA and QQQQ also put in new highs for the year today. The IWM and XLF are still lagging on the daily time frame as they are not even close to their highs for the year. The TICK and TRIN were very bullish today with a notable spike to the bearish side around 2:40 when Meredith Whitney came out and made some negative comments about financials. The VIX finished down by about 2%. If traders were more convinced by this rally, the VIX would have been down at least 4%.
From here I am looking for continuation to the upside, a consolidation pattern, or a reversal pattern. I know that covers most possibilities, but I am personally just waiting for the reversal pattern that signals a sell on the broader indexes. At that point, I will take advantage of the next down leg and sell out of all bearish positions. I need to re-think my strategy and I do not want to continue playing with leveraged ETFs much longer. I am going back to picking individual stocks.
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