If you can believe it: that was the easy trade. On Friday everybody was talking about the coming apocalypse and a possible crash on Monday. From Monday's low we rallied 50 S&P points. From moments of extreme pessimism and fear we generally get a snapback and we just saw it.
We are not yet overbought so there is not an easy trade on the downside although it would not be surprising if the market took a breather. I don't believe we are headed to new lows and this rally should last a few weeks. That does not mean we won't have nasty shakeouts along the way. I'm expecting a bumpy ride. Have a good night.