ONE HOUR RALLY

We got a rally today, but just for the first hour. The sellers came in and pushed the market lower. The sellers are strong right now. Although I can't predict the market on an hour by hour or day by day basis, the probability is that the market will continue to drop. Put options should be considered on any rally. Although I think the energy sector is due for a rally, the sellers have proven today that they can continue to push the market lower...despite its already oversold condition. I said last night that Monday's price action was bullish. Today's price action was very bearish. With the failed rally today, we could get a violent move down in the near future. Buy June or July puts on the SPY, DIA, or QQQQ especially if we rally up at all at the open tomorrow. For higher beta trades, you can look at the financials or even technology. AAPL could even get down to near $200 when all is said and done. Gold might have one more push in it, but it will soon be the next big put option play...yes, I said put options. I thought gold was topping out a couple of weeks ago. With this latest run, I'm even more convinced that it is getting ready to drop. Keep in mind that I did say that it might have one more push up before going down. It might not be ready to trade yet, but start keeping an eye on it.