Up 1.25% is very impressive.
Unless, of course, you look at the volume, which is what we usually get on a holiday. This is why, for the most part, we are sitting on the sidelines with plenty of CASH!!! – ass these low-volume market moves do not make us very confident that the "rally" will hold once activity picks up. As noted by Dave Fry last night:
As markets were weak the previous two weeks it was the perfect time for a short squeeze and we’ve seen this numerous times over the past many months. There were also some supposed bullish comments from the IMF and (yes, them again) Greece as the Germans caved for another rescue.
But, another true thing is there was little volume in trade Tuesday, and this means little participation which to me is a negative.
We knew this going into the close, of course and I said to our Members last night (6:56 pm):
As long as the Dollar is over 94, the Nikkei can hold up but 16,900 is our shorting line on /NKD (you are on your own in /NIY). On the others, /NQ is a great short at 4,398 because 4,400 should be tough to cross – so a good stop. Matches with 2,080 on /ES (another good short) and 17,850 on /YM and 1,125 on/TF so those are the confirming lines.