What A Rally

Wow, I got killed today! What a bounce! Should have had a few longs as a hedge.

Now, I lost money on my short ETF's, but here is the really interesting thing to me: my September and January puts (short positions) were virtually unchanged.

This tells me this a a technical rally and that large investors are not selling their downside protection. The cost of insuring long positions through Fall 2010 and Winter 2011 remains high.

Fundamentals have not changed, in fact, the data was terrible today.

Staying short!