Moon’s Batting Average up to 72%

July 9, 2010, 3:21 pm

As of last Friday, I had little confidence that the market would stage this strong a move up, close enough for the Index to possibly show an increase during this phase. But, amazingly, it has.

As I see it, nothing is really that different. We’re essentially back to where we were at the end of June. So don’t listen to all the talk about “the bottom”, the “recovery beginning”, “optimistic earnings season” and an uptick in the 2-year Treasury yields. It’s what comes after that I’m focusing on.

I used this run up as an opportunity to lighten up further and to add to some market index shorts. Sorry, all, but I’m hoping for no more than a 0.5% increase tomorrow and then, with some disappointing earnings reports, for significant declines over the remainder of the summer. I’m playing it like there’s some more left on the downside. That’s what the MTI still says and it could be wrong but I’m trying to remain discipline so that’s how I’m playing it.

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