We got a nice bullish day today. The SPY and the IWM both had very nice bullish moves today. Volume was more pronounced today than yesterday in both exchange traded funds. These moves have certainly helped our bullish portion of our portfolio. A very strong day today in that regard. The trend has not really changed yet, but sideways could still occur. We still need to see some additional breakdown to fully identify a bear market.
I still have the bearish call spread on the DIA right now that is doing fine. I also re-entered QID this afternoon as the buy signal re-appeared. Remember this trade is generally very short term in nature. We shall see how it goes. If it works out we are more likely to see a bear market than a bull market as we would form a lower high and we already have our lower low. DIA rose on a very low amount of volume.
My bullish trades have not signaled a close yet so they are still open. This week should prove to be interesting in determing future price movement.
I still question the ability of this market to continue its upward trend right now. I am expecting a downward push to occur but until it does the trend has not changed and the trend is our friend. I especially call this into question as the dollar as represented by UUP has not weakened substantially this last week. We should see some additional upward mobility in this sector which will have a general negative correlation to upward mobility in the general market direction.