Morning Rallies are Completely Meaningless, Until…

Until they’re not anymore. We’re all so jaded, it’s ridiculous. Futures are higher and the market looks like it will jump off this morning, something that its done, repeatedly, over the past week–only to fail. While morning rallies are often subjected to swift sell offs in bad tapes, there will come a day when the market just doesn’t look back–leaving you and your little friends in the dust.

This is why I’ve been buying SPY each and every morning, over the past week. I’m done buying, 200% long SPY into a vast black sea of murky uncertainty.

For markets to rally we need oil, copper and Apple to be strong. In addition, we need some institutional buying to show up in the afternoon to offset retail margin selling, which should continue for the next few days.

I am very optimistic for a 1-2 week rally, which will feed off the negative backdrop, naysayers, and outright malcontents, who will miss the first leg of the rally and enter late. I will be selling into it and then sideline the proceeds until the next oversold signal in Exodus presents itself.