Jun 24

00:10 a.m Too busy yesterday, so a short summary. We still own DIA and are still underwater. 888-890 is still holding and we are still oversold. But this is not bullish action. We need to break 900 before the 26th, because that is a key date in terms of pivot days and weeks since the rally started. This action looks almost like the stock market is waiting for the dollar to put in the last few pieces of a bottom pattern before a waterfall drop. We need to hold rally tomorrow.

10:30 a.m. Jun 22 cycle lows seem to be holding for now. We have a nice rally, albeit with a light volume. Our DIA bet is in the money now. 927 is the real test. If we get over that we can attempt the recover highs of 956.

11.10 a.m A personal rant - We would like to see Roubini and Cramer face off again. At 666, Roubini called cramer a fool. Cramer may be one but he is definitely a rich one and anyone who followed cramer would be sitting on tons of profit. Maybe Roubini has good fundamental reasoning (arguable in our view), but whenever he speaks of doom the market rises.

1.45 P.M Out of longs for a negligible profit. FED meeting coming up and we cannot handle whipsaws.

5:20 P.M Standing out of FED decisions is always a good thing. We continue to look for a rally into 26th atleast. We think the market can make it to the 920s before that day. Our next cycle low is in the first week of July 7th. It is quite likely the market rallies into 930-950 by the July4th weekend on relatively light volume.