There is a possibility that the counter trend rally may extend into something more significant. The short term indicators have moved to 'neutral.'
We have shifted our hedging bias from slightly short to neutral pending a strong close. But there will be no adding of shorts in size unless the market breaks significant downside support.
Be prepared for this market to turn on a dime. Risk remains high so this trader is hesitant to go long until we see more of this bounce, and potential inverse H&S bottom.
It has to bother one a bit that there are so many 'bottom' calls floating around.
This Cafe is playing a tri-partite hedge involving a mix of longs and shorts in commodities, stocks and government bonds.
Please note that the SP hourly chart has shifted to the June futures which are now the front month.
