Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Friday - dead cat bounce?

|Includes: CAT, SPDR S&P 500 Trust ETF (SPY)

This week the markets’ correction has arrived both in Usa and in Europe. My Greece Etf that closed the previous week with a +5% gain, dropped badly and now stands at -5%. Quite volatile those guys! Stop has not been met so far.

S&P500 gave a sell signal this week below 1310. I tried to sell it for a quite short term trade. Shorted a 1309,75. I had a target of about 100point, but when I saw that for 2 days didn’t fall below 1300 thresold, I closed it basically flat. This because the market is in strong uptrend and if don't fall quickly, it could rebound. And it happened on Friday, but without volumes (as you can see in the imagine). This could offer the chance to try another short this week, because market could make a sort of double top if volumes don’t arrive. By the way, as I told many times, markets were very overbought and a correction is healthy.

S&P500 weekly

I’m patiently waiting for basis building on stocks in my watch list. (but this don’t exclude that if there’s a breakout in leaders, I go long, even if with tidy position)

At the moment my portfolio is 80% cash with this positions:

- bull calendar spread on CAT

- Collar on Snam Rete Gas until June to get the almost 6% dividend

- long Greece ETF

- trial long in Copper ETF

Let’s see if this week something arise. I am considering also to open a bear spread on same weak stock, but I haven’t had signals so far in the stock I monitor (basically I almost nevershort leaders that are getting weaker, but prefer weak stocks in weak sectors), or stocks that have disappointing earnings).

this week is full of important events able to move markets heavily. I list the most important:
- Bernanke speeches at the Congress
- ECB meeting and Trichet Conference
- Labour market data
- China PMI