The last two days the markets spiked higher in the last 30 minutes as shorts were forced to cover.

We have gone from the "sell the close" trend where those underwater on margin were forced to liquidate before the close, to a buy the close trend where those who are short and have no staying power are forced exit. This is a positive for the market but it makes it very tough to launch new plays.

I was hoping to get a decent pullback on Thursday to inflate put premiums and give us an opportunity to load up before earnings and expiration next week.

I scanned over 100 charts tonight and the ones I wanted to play are simply too extended for a good entry. At the risk of missing another short covering spike I am going to wait one more day and hope that traders take profits ahead of the weekend. A nearly +5% move in three days is begging for profit taking.

Jim Brown

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