Nothing stopped out today! You have to love it when the shorts are forced to run for cover.
Our portfolio got a serious shot in the wallet today when a +250 point run by the Dow. All of the indexes finished at two-week highs and slightly over resistance.
There were multiple reasons for the big squeeze. The U.S. said it would support a bigger bailout package for EU countries through the IMF. That sent overseas indexes soaring and our futures turned strongly positive.
The national ISM report for November was slightly stronger than expected at 56.6 and the ADP Payroll report suggested that Friday's nonfarm payroll report will show an increase of +180,000 jobs. That would be the largest monthly increase, not counting temporary census workers, since May-2007.
The sudden onslaught of good news after two weeks of market declines was timed perfectly. Those two weeks of declines gave shorts multiple rebound entries to add to positions and Tuesday's close right on critical support had all the shorts holding full positions. Welcome to Wednesday!
The key now is to hold these gains for more than 24 hours. Every short squeeze since Nov-3rd has been met with selling the following day. Let's hope this time its different.
The only position to hit our stop was CREE at 10-cents for a $1 profit.
We are in very good shape and assuming there are no equally large triple digit declines in our immediate future we could escape the November positions with a huge gain despite the early November losses.
Current Position Changes