11/13/2008 And the reversal appeared...

We finally got that reversal I was talking about. This is the kind of move you look for that, at the very least, can mark a short term bottom. Now we really got to get to work.

So the first most obvious question is "O.k. we were up 550 points today, after being down 300 making it a 800 point swing... so now what?"

well... it WILL take TIME to repair the technical damage done in order to continue this move higher. So here are some things to look for, followed by a chart that is important in the short term;

1) We must now look for a follow through day in the next 2 weeks or so. A follow through day would be another rally with a more than 3% gain across the indicies and it must come with greater than average volume. A follow through day will confirm a trend change and confirm that we are in a rally.

2) Today was a monster move and may still be extended further (see chart below), but there will be some pullback before a further push higher. Remember it will take time to repair damage, indentify leaders for the rally (most likely financials and commodities), and really get the move going.

3) For a clue/hint on whether this is real and we are going to get a full blown bear market rally... watch the financials on market pullbacks. If financials and commodities stay relatively strong on pullbacks of these moves up, then there you will find strength behind the move and will suggest more pushes higher. An example of this would be the S&P down 25 on a pullback of a big move like today and UYG only down 1-3% or DIG/USO barely down or flat.

Here is a chart of where we might get a near term resistance for a pullback on todays rocket launch;

S&P first



Now UYG



Good luck trading... A lot of money can be made from down here if played correctly.

Change in position today...

Doubled my UYG position to 8000 shares... at 7.75$ average..

DIG position unchanged at 500.