China's economic growth numbers had the markets wobbly this morning, and stocks moved lower in what looked like a technical trade. Existing Housing was off a bit, but not enough for a sell off.
And they bought the dip. In days like this, it is not so much the initial reaction to news that matters, but rather the reaction of traders to the reaction, and this market is about as cynically bullish as they come.
So what next. Until the VIX gets some real upside legs and serious support is broken to the downside, shorting is for scalping. The Fed's float of liquidity has the markets pointed north, although there may not be a lot of substance underneath them.
It is a dangerous situation, but if anything the Fed and their friends have shown a propensity for rolling the dice-- with other peoples' money.
Have a pleasant evening.
