Hard Cross

Every day I walk in shadows
I know not what it is
I'm heading for
--Tarney Spencer Band

Markets continued to sink on the opening bell this am. An hour or two into the day, I felt a tinge of remorse after unloading my short position yesterday.

Weakness continued until late in the day, when chatter surfaced that the European officials were creating a 'bad bank' entity to dump troubled securities tied to the sovereign debt crisis in the EU. In the final 45 minutes of the trading day, markets went from being down 1.5% to being up 2%. The SPX recaptured the 1120 level and had nearly a 50 handle intra day range.

Naturally, any remorse still pulsing thru my veins suddenly vanished.

Coupled with reclaiming previous support, the long tail pattern on the charts suggests a 'flush' and perhaps a near term low. Add to that my growing sense that sentiment was getting pretty ugly (e.g., I got a call last night from a distraught friend who was down big and wanted to sell all of his stocks), and perhaps we have the makings of a durable rally.

I do know that I'm in no hurry to re-engage on the short side right now. Would rather sit back and observe for a bit.

Did nibble on some DBC this am as commodities have been getting hammered and many are sitting on technincal support.

position in DBC