400 points swing!

400 point swing! A question on many people's mind is - is this a follow through day and an official beginning of another bull market? Or is it just in the middle of B wave? Volumes are similar to yesterday's and are not quite impressive, maybe more people are holding off for tomorrow's economic data.

What have fueled today's rally? The assurance from MBI, a leakage from tomorrow's data, or an attempt to price in another rate cut?

http://www.minyanville.com/articles/Bernanke-Fed-JOBS/index/a/15742/from/yahoo

DJI tested Nov low and closed at trend line, SPX passed Aug low but didn't pass yesterday's high, and IXIC closed above Aug low. XLF closed at the upper trend line with less than yesterday's volume. XHB and IYR also had a good day. Energy sectors USO XLE are not impressive, but transportation had a great day. IYT rallied 20 points in 8 sessions, with today's 70% more volume, I will keep an close eye on this sector for a pull back. TLT 20-year bond rolled over with 160% more volume!

GOOG was sold off AH while ISRG jumped up after both reported their earnings. Will GOOG follow AMZN's turnaround tomorrow? I will not bet on it.

Following Dow/Naz stocks had a big volume day: CDNS AMZN HOLX ALTR PAYX SBUX

Following IBD stocks had a big volume day: BPHX CVD MA HOLX GMCR ANSS

Besides energy sector, gold also showed more weakness today. GDX dipped despite cross-board market rising, which is not surprising given that gold has topped. I opened a short position on GG, which did break down in the late session. If you don't want to pick a single stock to short, GDX has options too.

I sold my yesterday's short position (bought on top of Fed's rally) when market gapped down today. I was planning to hold for a while but a gap down looked too suspicious and the profit was tempting. I will not chase high at this point and may short if market gap up tomorrow.