Update

Been increasing short position a little. Let's see what happens after 2:00.

After Alcoa

Alcoa was a bit of a disappointment for the Street and CHina has raised bank reserves so we are looking at a down opening on the stock markets. Correlated 'risk' markets are off as well. I will just have to see what happens after the first hour and where breadth is. I may just have to go in and increase my short at these levels depending on what I see.

Monday morning

Looks like the China exports number is going to give us some more push up. I still plan to sell into it at the levels I have mentioned before. Put Call numbers are extremely heady and breadth just gets narrower and narrower.

Payrolls

The Employment report this morning is sure to generate volatility. My plan remains the same. I am net short now, though not in huge size. I am hoping we push higher for more substantial size. Will sell the Naz 100 all the way up to 1160. Over 1165 for any decent amount of time and I am out.

Beta

Hoping for some more push

Money was put to work in the first day of the year which is not unusual. I am hoping for the Naz 100 to push up towards 1919-1931 on the futures by the end of the week for some decent short exposure to that index. Over 1965 and I will have to cry "uncle."

Starting the New Year

I will start the New Year on the short side. The last hour of 2009 was pretty bad. It was bad enough to drag the NYSE McClellan Sum down. The Nasdaq AD line turned down after a glaring divergence. The Naz 100 futures have generated TD Sequential Sell signals on the daily and weekly charts. Interestingly the 30 year future generated a TD Sequential Buy Signal on the weekly chart. Sentiment numbers as reported by SentimentTrader.com are heady to say the least. Fundamentally, I think stocks are overvalued so I prefer the short side anyway.

We will see what happens.