Haven't been blogging for a few weeks (you've noticed?) - things with the market have been kind of dull - meandering in a range in the mid 1000's and I've had some other things going on including a long needed vacay....
Anyway - 2 very quick things:
1) the latest S&P intraday high to watch for is 1080 with the highest close at 1071.66. Both numbers are suspiciously close to the magic 61.8% retracement of the Oct 2002-Oct 2007 Bull Market. The level didn't really serve as support on the way down, so I'm not sure why it should be significant on the way back up again, but there's always the chance that it will repeat as resistance again on this current little subleg up. I'd treat a bounce back down off of this level as not necessarily a major "top" (yet), but rather, as an opportunity to do some short-term swing trading - jump on an inverse ETF going back down until it hits support and then ride a regular ETF coming back up. On the other hand, if things move right through this level this time like buttah, treat it as a confirmation of being long and stay in until at least the Oct 07-Mar 09 50% retracement around 1115.
2) Speaking of ETFs, for the past few weeks I've been playing the 3x real estate ETFS (DRN long, DRV short) and have been seeing a lot more success (i.e., volatility and profit opportunity) than the financial ETFs (FAS/FAZ). For example - I made 5.5% today on DRN - FAS would have only returned 1.14%. The only downside, is that my belief was that the financials moved closer with the major indices such as the S&P, so that I could watch the S&P and change in S&P direction as a proxy for when to move in and out of FAS and FAZ. I'm not sure that I have the same comfort level with the real estate sector ETFs yet, so I'm finding myself keeping a closer eye on them rather than the index. But so far so good.
Gotta run - seeya