ST. PATRICK'S DAY COULD BE GREEN...AS IN BULLISH

The market staged another intraday rally before selling off a bit at the close. There have been market retracements during this downtrend, but most of them are happening intraday. I bought puts near the market close expecting this trend to continue. If the Japan nuclear disaster fears ease overnight, the market may stage a rally. There are short sellers that will cover their positions at the first sign of good news. That would cause the market to rally, but not necessarily reverse the downtrend. The rallies are being sold right now, so a rally tomorrow could provide another opportunity to buy puts. I won't start to turn bullish unless the S&P 500 can move above its February 24th low (about 1295). We'll see if the market can stay in the green tomorrow. If the market looks like it will stage a rally, look at stocks in the energy sector as possible short term bullish trades. VLO and MEE come to mind. CAT could also be a short term bullish candidate...and EOG. These would probably need to be short term trades. I still think the market is heading lower over the next week. Have a great St. Patrick's Day!