Out Fox The $treet

Market is likely gassed on this parabolic move today. After such a huge run over the last 2 months, this is likely the blow off top for now. But, I wouldn't expect anything more then a 2-3% pullback maybe to the 20ema around 1180. Market needs to regain some energy before blowing past 2010 highs.  Part of the reason for 1.5% jump in the markets today was the news that President Obama is willing to discuss keeping the Bush tax cuts for all taxpayers. Though from more current reports it appears that for the highest taxpayers he's more willing to discuss it as opposed to implement. This is a positive development, but the market has taken the market has gotten ahead of the news. Discussing and approving are 2 very different options. This trade more then doubles the short already held in the Drexion 3x Small Cap Bull (TNA) at $59.16 for the Opportunistic Portfolio. It also just hedges a leveraged position so it by no means signals a bearish stance. Just covering profits without...

With the SP500 up 3.5% in the last 2 trading days, decided to take a small hedge going into the jobs report tomorrow. Shorted roughly a 5% position in Drexion Small Cap Bull 3x (TNA). This stock has shot up from $32 last week to $38.5 today. Also these 3x ETFs tend to be long term losers so being short will work out unless the market surges. Regardless the main goal is to buy some protection in the Opportunistic Portfolio that was leveraged at 1.8x. TNA will provide good protection because the short will win in either down or flat markets. Only an extremely bullish market does this ETF lose and we're already set up to profit from a big market move up. Will hold onto unless the jobs report is extremely bullish tomorrow and markets regain the 200EMA around 1,093.