SQUEEZE

Well the short squeeze from hell came in giving bears a nightmare - me included. I got out of all shorts yesterday when it became apparent we are not going to break down..I gave back around 70 points of my profit in the process but well still a very very good profit in my positions.

Yesterday was a concerted effort by all central banks to pump up the markets. See how Hangseng and China which were in blood recovered toward the close. See the news below -

Sept. 18 (Bloomberg) -- The cost of protecting corporate bonds from default fell after the Federal Reserve, Europe's biggest central banks and the Bank of Japan said they are taking coordinated action to ease tensions in financial markets.

Credit-default swaps on the Markit iTraxx Financial index of 25 European banks and insurers fell 15 basis points to 135 and the subordinated index dropped 30 to 265, according to JPMorgan Chase & Co. prices at 8:15 a.m. in London. The Markit iTraxx Europe index of 125 companies with investment-grade ratings declined 10 basis points to 135.

Credit-default swaps, contracts conceived to protect bondholders against default, pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements. A rise indicates deterioration in the perception of credit quality; a decline signals the opposite.

AND NOW - WHAT NEXT
The bounce should continue for few more days. Maybe into beginning of next week. I will look to build shorts again at around 4100-4160 levels all the way up to 4220. Above this means we will try to grind up higher but I doubt it will....Let us see. Market is all about taking risks to make the big bucks. Yesterday if I was conservative, I would have made much more but I took a risk expecting more - When the market told me to get out, I did. Still did not go long because in this environment, we just do not know what will happen overnight. As I said before, we are in unprecendented times - No one knows what next. We can just take calculated guesses based on TA and trade that. The market tells us if wrong. I am looking forward to building the next short position.

Btw - Did anyone see GOLD yesterday?...I am sitting on good profits on my investment long position. Enjoy!

Best.