After thinking about the price action and the movements in the market over the weekend, I can no longer be bearish as I was on Friday. It feels like a coin flip at the moment, it could stall out here and go back down, or it could take a rest for a few days and blast higher to 1840.
I like to watch CNBC Fast Money, just to see what the investing public is thinking. After a V reversal, I expected to see a mix of bulls and bears. It was all bears. Not one was forecasting the market to V bottom and go straight higher. Most were leaning bearish, looking for another pullback. Brian Kelly is still short, and it makes me uncomfortable to have the same position as him.
Although I would like to see more volatility, and see the market go back down to 1740, it just doesn't feel like it will happen. The market was just too strong on Friday, on a bad jobs number, the kind of reaction that surprised almost everybody. From experience, when the market is surprised by such a move, it has a tendency to go in that same direction in the coming weeks.
So I have closed out all positions, and now looking for individual stocks to trade, looking for small opportunities. I will go back to futures trading when I have more conviction on market direction. Right now, I am neutral.
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