Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
A nice reversal here in the closing 90 minutes to get the S&P 500 back into “the box” of upper 1350s to low 1390s. As I stated in an earlier piece, some sectors are nearly washed out and even within the context of an intermediate term move down would be prone to some bouncing. Hence pressing shorts after such a sharp move down posted some risk. The market had fallen from 1415 to 1350 in a week. Granted in latter 2008 and early 2009 that was “just a typical day” but it’s a sharp move down in a short amount of time in a normal context.
So we’ll see how long this sustains.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
