The market surged to the upside after 2:15pm ET following the Fed decision to leave rates unchanged. The tone across the board was very bullish and strong volume accompanied the up swing. The Dollar dropped sharply against major currencies while commodities rallied including big moves in Gold and Oil.
I started the day biased to the bearish side via my numerous double inverse ETFs- QID, SDS, DXD, MZZ and TWM. Following the Fed announcement and gauging the bullish market reaction, in the space of 4 minutes I proceeded to sell all those inverse ETFs while adding to the double bull ETFs- QLD, DDM, SSO, MVV and UWM. My best performing longs included SNDK, MU and OXPS. My Euro and Gold positions did well too. The portfolio finished the day considerably higher with a large factor being the post 2:15 switch from the bearish to bullish ETFs. On a day like this, its best NOT to argue with the market. I can be bearish or bullish but ultimately, one needs to follow Mr. Markets direction to make money. How much upside we have is anybodys guess but, todays strong bullish action suggests, we may still have room to move up.
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