Short has always been a tenuous position in a market driven by $Ben's fiat dollars. This "rally"
is very narrowly-centered on a few darlings that have stayed relatively-high, and are now getting squeezed up once again. That would seem to explain Y the squeeze-ups on the indexes lately have been rather attenuated? The NASDAQ is a laggard because of the AAPL exodus.
For now, my bet is that we melt-up (long on SSO) and NOC JAN13 CALLs. I may add DDM (long the DOW). CAT, my most profitable short, and the DOWs punching bag, is now getting squeezed up.
It'll make a great short when things turn south again.
There's no selling-pressure seen anywhere, except virtual elevator shafts down, like FCX. Looking at a long there. Should be good for a couple of bucks by Jan13.
Sentiment: Buy