Today, markets did well. S&P 500 gained back almost 20 points from yesterday 35-point loss. However, the fact that we had some sell-off in the last hour to close showed how volatile the market was. There were plenty of people who didn’t believe in the uptrend and started to short. I unloaded some part of my long positions at today’s retested high. It’s a game of damage control, I’m playing.
Uncertainty is the outlook for tomorrow. Market is trying to gain based on US economy news but not Greece’s. However, it’s not Greece! It’s about other European countries from what I observe from bears’ arguments.
I’m market neutral with little bearish bias at this point. I think tomorrow’s open will decide how it closes. Being prepared for this, I will join the bear if markets open red, or stay neutral before increasing my long positions otherwise. The long term is still bull friendly. However I don’t count on it since I don’t know how long and large the pull back will last if any.