Unlike the tripple digit advance that fizzled yesterday, today's early gains more than held. The Dow finished up 130 points to 11230, the Naz up 46 pts to 2115, and the S&P up 17.37 pts to 1285. The volume was heavier than yesterday. More importantly, many indices finished above important moving averages. With stochastics still near the oversold territory, the long-awaited summer rally may have finally arrived.
Naturally my short positions are giving me headaches at the moment. Right now, the call I made a week cannot look any worse even considering that my time horizon was on the order of weeks to months. My pessimistic view on the economy hasn't changed, but as Keynes famously said, the market can remain irrational longer than one can remain solvent.
Perhaps the only saving grace for my account today was the positive action in PM stocks relative to spot gold (the HUI was up 1.6% while spot gold was down 1%). Coupled with the fact the HUI has reached the apex of the triangle outlined here I'm hoping for some upside here to save my portfolio this month.
Not investment advice. Please do your own DD. Good luck and be safe!