The markets bounced back smartly today but surely even the hardcore bears don't expect the bulls, who have performed so well for over a year now, to just roll over and die. In yesterday's post, I had pointed out the number of times the bears had lost wonderful opportunities to gain some momentum just this year. Well, time seems to be running out for the bears once again and the results that came out after hours today are just going to make it that much harder for them tomorrow. But make no mistake, the chart shown below is still bearish. The S&P is still below MA(50) and the ball is still in bears' court.
I still maintain that ending the day cash heavy is the right strategy here. While staying in cash is not the most sexy of calls, say like calling tops and bottoms, sometimes its just the right thing to do.
Take care and good luck!