MJTT

$SPX  6-Month, Daily

And I'm also getting slaughtered in the market.  Why?  Well, on my somewhat-kinda vacation, I decided to hop on my laptop.  Much to my chagrin, I bought FAZ last Friday.  There was no true vacation, and there won't be until I can get out of my shorts.  It will come soon, I pray you, for this rally is just another hoax.  If you've been following me on Twitter, I've been slopping together a ton of TwitPics, allowing myself to be fully absorbed in the market over my "vacation."  Bad move on my part.

Stuff happens.  You win trades, you lose trades, and trust me, I've been losing lately.  My March gains are gone (for now) and my February gains are being challenged.  Do I mind though?  The answer is no.  I don't mind because my conviction on this market is completely correct.  Our government is not doing things the capitalist way, and the market skyrockets.  Interestingly enough, GLD was selling off in the morning today like none other...  But, just as the Fed comes on TV and announces their plan to buy U.S. debt, GLD goes nuts and goes on a +6pt. rampage.  Just the thing I've been waiting for in order to plot my revenge on Mother Market.  In other words, I got my enormous buy volume accumulation today from GLD, which is a piece to the sucky rally puzzle.

This rally is a joke, and although I said I'd buy into it (and I did via UYM, TNA, and swing trades in FAS), I have no interest in going bull right now (not even in the littlest bit).  In fact, I added to my FAZ position today at $33.85 to average my position price at $37.16.  I am underwater and pot-committed TO THE BONE in FAZ right now, and I could care less.  When this rally implodes the market and FAZ is back to its amounts of $60 and $70, I will greatly appreciate the wrath of the bear market.

Just because C, JPM, WFC, and all the other schmucks say they're "profitable" and Ben Bernanke says they're "solvent" doesn't mean they really are.  Our government is not as stupid as they appear to be folks.  They saw what happened at the beginning of this market tank when they played the doom and gloom game, and now they're playing their citizens, the ones that they are supposed to be representing, like XBox360.  They are Louisville, and we are Moreland State.

It doesn't matter what you think right now.  Everyone is right.  I am right, you are right, and I know a lot of the people I talk to on twitter (shout out to @mikailov @fortune8 @kunal00 @hawaiitrader @WeeklyTA @UrbaneGorilla) are right as well.  We all have our own theories, and they're all right at some point in time.  The "at some point in time" part is obviously very important.  Timing is EVERYTHING in this market.  If you don't believe me, read The Fly's "Best Thing That Could Have Ever Happened to Me: Part 2" at iBC.  It's all about how perfect his timing was.  Although my patience on this FAZ trade lagged, you must realize that getting into iETFs soon is not only important, but smart.  Take your spoils from your bull run before your bull gets castrated.

Another thing to contemplate.  This is the absolute inverse of what happened from Feb. 10th to March 9th, too quick too soon being the only difference from then to now.  You see, not only are we rallying with a V-Bottom, we are also getting ridiculously overbought...  Almost as ridiculous as how oversold we were when push came to shove a week or so ago.  So, was it right of me to hang onto FAZ @ $40.48 when it went below $35?  Probably not.  We are entering a near-term era of overbought, and when it ends, the market will go back to its routine of bad news, false profits, government screw-ups, and some left over lagging Econ. Data.  In my opinion, I still find it hard to believe that many people feel that the fundies on the financial sector are patched up and good as new...  It seems as though February helped them oh so much!

This was my welcoming back post.  I've done a lot of reading, and most importantly, a lot of relaxing (even if I was trading as well).  I am trying something new, and if it works out, I will disclose to all of you what I did and why I did it.  Otherwise, I'm back.  Stay tuned for charts tomorrow.