Right on Schedule Comes the Rally

As I wrote last night:

Now if you were a conspiracy theoriest you would notice just like in August and in November when we sat on the edge of the cliff today near 1400, and near the end of the day under 1410 things "perked up" all the sudden and we bounced a bit into the close. A conspiracy theorist would opine that tomorrow premarket we get some heavy futures buying and the market will look all spiffy again. Let's see how it plays out - the action in financials, retails etc suggest a very washed out condition and to break S&P 1400 on the first or second try would be atypical. Hence why I still think odds favor some sort of bounce (however brief) before the next round of weakness. This is at least my short term thinking - correct or not.

Amazingly how convenient this all worked out. Paulson was on CNBC this morning to boot. :) Futures ramped up ahead of the bell... and away we go. Not that I am a conspiracy theorist ;).

I will be looking to take some profits and start raising a little bit of cash - my cash position is far too low as are my Ultrashort positions. However, as I mentioned last night I am hoping to see a few days of strength first... remember we have Mosaic (MOS) reporting tomorrow. I expect blockbuster earnings - the question is are investor expectations too high? A part of me wishes they are so this stock has a correction and I can buy at far lower prices.

Other than that let's see if this bounce has any legs and if we quickly move from fear to greed (again). Investment banks report next week which also should be quite a circus - but as I stated yesterday these names are so washed out, and I expect they will be announcing some layoffs - so perversely they might do better than we think at least in the very near term.

Long Mosaic in fund and in personal account