What a sad day for bears, both the Chicago Bears and the market bears, unless you were short going into the day. Even then, it was still a pathetic performance: you have once again proven you can’t keep the market down. TLT and VIX were atrociously weak today. TLT felt like VXX today – it was being bid up at times, but, as gapandyap always says, it can’t keep it up. Meanwhile, the bears got everything they could ask for from the euro. It puked all over itself. Additionally, a tech and dow leader, Intel, slashed guidance in a big way. Regardless, the dow and nasdaq outperformed the S&P500. Go figure.

I am fully expecting us to trade higher through the end of the year. I added TNA and BAC to reflect this thesis (currently hold GMXR, which has some work to do before it goes higher but I’m generally liking it. Also have RBCN, which is going to rip shorts’ faces off shortly). Also short AMR via puts.

On a different note, today offered some interesting correlation divergence. We saw a weak Euro (bearish); weak, but still stronger treasuries (slightly bearish); and the VIX was poleaxed (bullish). Usually, all three will trade together. Perhaps we are seeing some type of trend change, where a weaker Euro isn’t as detrimental to the equity markets as it recently was. Watch this going forward.

http://www.youtube.com/watch?v=NDjPlxYzyTE
 

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