The official Santa Claus rally just started. The reasons are:
- Credit default swaps are up
- Junk bonds are up
- McClellan oscillator tuned up, finally
- Advance-decline indicator is sharply up
- Because it’s Christmas time
Of course I do expect some kind of sell-off in the remaining two days of this week but it won’t go as low as past Monday lows, that was the bottom, methink.
We will continue our scheduled bearish programming next year 
No, it doesn’t mean I will stop posting, but my posts for the rest of the year will be bullish
Update. The Libor spread problem I’ve pointed in the comments yesterday is charted here:
20 year record that we are observing. Feds will have to cut in December, no doubt I have about that. Should give the market what it wants, for now, i.e. Santa Claus rally will continue for the next few weeks
November 28, 2007 at 8:02 pm
Libor is 5.08% already. The spread is a record for this year. I’m too lazy to dig but I think that the spread is something like 3-4 year record today.
This rally will not take us too far, October top will not be reached
November 28, 2007 at 8:04 pm
Some people are coming to my blog after Google search “etf to short commercial real estate”. Interesting, I’m kinda of expert in shorting real estate now
It’s SRS folks, SRS.
November 28, 2007 at 8:14 pm
Tops are great places to short and bottoms great time to go long, with all the double inverse bear funds retail speculators have jumped into these with little or no thought about good entry points, how long to hold or any plan what so ever. I was trading the QID for awhile but the huge volume of soft short’s made me a scalper and I finally got tired and moved on.
November 28, 2007 at 11:31 pm
You sure can change your story when the wind blows in your face a little.
Don’t you understand how saying this drags down your credibility?
I was starting to take what you said seriously.
Bull market?? I don’t think so.
November 29, 2007 at 4:27 pm
guy, I’m sure you’ve misread me. I’ve said that:
1. Next 4-6 weeks are positive for stocks
2. We won’t go as high as October highs, but there is a room to go up even without setting a record
And yes, I change my opinion pretty often
Every time the reality shows me that my previous opinion was wrong I change it 
November 29, 2007 at 4:30 pm
About SRS I did not say that right now is the best time to establish a position. I think waiting a little will bring a better entry point.
I have position in SRS for about half a year and I don’t touch it
November 30, 2007 at 3:03 pm
guy: roxy has said he’s short-term bullish but long-term bearish.
don’t fight the tape.