I pointed out the heavy put buying this morning. That was the clue that people did not trust the rally and probably the reason the market was able to hold on. It is hard for me to see how this market can go much higher. There are some shorts to squeeze but with the economy faltering and the cracks in our financial system exposed I can't imagine who would put money into this market other than for a trade.
Everyday seems the same as technology stocks and energy stocks underperform financial stocks and retail. The trade is completely self feeding now as more liquidations in hedge funds cause more hedge funds to unwind the trade. Respecting the fact that these unwinds almost always last longer than anyone can imagine I used the late day strength to begin a short in RTH. I expect RTH to go higher and I will use that strength to build my position. Longer term I believe retail is going lower so I chose to fade that part of the unwind. Going long energy stocks would probably give me the biggest bang for my buck but I believe oil is going lower in the intermediate term. Have a good night. Hopefully this will get easier.