Naked Hedge Fund

The bulls have got the market churning again even though a week earlier everything was completely different. A bottom call from Doug Kass and some “value buying” later we are back to where we started with our recent short. Chart…

Today the bulls had the market primed and ready to rally through the 200 day moving average, but instead they market got rejected big by the 200 day moving average. This returns the market to bear market territory and reestablished the downtrend.

The bulls have the market perfectly placed right on the 200 day moving average ready to break it out on some phony jobs numbers that are a lagging indicator. We will have to see if this will be the case when the report comes out tomorrow morning and evaluate our position with the Naked Hedge Fund which has been short since late April. Chart on Full Post.

This week has definitely been a nasty week for the bulls and a great week for the Naked Hedge Fund as stocks continued a slide down into bear territory. We haven’t been below the 200 day moving average since mid 2009. Currently the market is down more than 300 points as Stops are being triggered in every part of the market. The next line of support is at $106 on the SPY, but I wouldn’t be surprised if the bulls try to defend the 200 day moving average by bouncing back through at some point in the near future.

Needless to say we are currently remaining short since our rotation on April 30th, where ….

Today’s bounce back was definitely big in terms of numbers, but not in volume. Also even though it was a big gain it still wasn’t able to break through the current downtrend line. This week will be an interesting battle to say the least. The chart below shows the trendline on a 2 week chart of the SPY.