The start of bull markets occur when everyone thinks the world is ending. Is that time now? I would say that the negativity is off the charts and markets look FORWARD, not back. Translation? You can stay short and try and catch a quick down move, but the bigger and much more profitable move is always staying long for a longer time period.
With the VXX trading around $20, negativity is hardly "off the charts." I would say that investors are rather cautiously optimistic. It's true, however, that a bull market should climb a wall of worry (if there's no worry, then watch out).
bear markets (like the one we are in) are known for powerful short squeezes like today. They suck you in. You just have to step back and ask yourself. ' what has changed in the macro environment today to jusutify the rally'
I cant see anything that has changed in Europe. We were technically oversold and a bounce was due.
The Euro crisis is only just warming up IMO. I am hoping for another 1% move higher in S&P this week and I may cover my remaining VXX short and add to my FAS & TNA shorts.