While my positions are net long, I am considering to use some PROSHORTS to hedge my long position should the market suddenly panic sell off again. This is because, the diamond is still forming, and it has a bottom support at 10500.
JPMorgan earnings was fantastic, showing that credit losses are declining, albeit at a high level.
Trading volume remains low as many investors are still waiting at the sidelines. I think when the DOW corrects again, then this will be the time when these investors will come in to swoop cheap stocks.
What if the market does not correct? Then we can just hold on to our long positions until it is clear that the market is peaked out. Currently, there is no such confirmation yet. Hence we can continue to ride it. However, this rally may end badly as it is mostly held up by the FED.
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