Today was a boring day but tommorow probably won't be

I did jack squat today with respect to short term trading. I still have my positions of small/micro cap stocks which I consider longer term holds. Alcoa had positive results after the bell and management is saying good things about it's customers and hence the economy going forward which has sparked quite a fire in the futures markets setting us up for yet another big gap up open.

I mentioned that I don't view gap and run days as favorable action. I equate those types of days to a sugar rush....it's nice while it lasts but then there's a crash afterwards...I'm not saying we crash but I'm saying that it wouldn't suprise me to see sometime in the near future that these "gap and run" gains get reversed. Perhaps they won't because the hallmark of this rally has been one wherby people have continually underestimated it...myself included and there are a few unfilled gaps in the charts at much lower levels and so I won't be a dogmatist and insist that all gaps get filled before it's onwards and upwards....I'm just simply playing the odds.

Although I may have underestimated the strength of the market at times never once during these past 6 months have I disrespected the strength and got ran over on the short side. I've learned the hard way years ago that if you don't show the market respect it will beat it into you.

Tommorow could actually set up for an emotional ST buying climax but again I must stress, be very, very careful if you play the short side here. Pick you spots wisely and have one foot out the door.

I'll be watching very carefull how the markets and indicators look like after the first hour of trading.

I believe what's helping to keep a lid on the downside is the strength in bonds. It may seem counter intutive...after all, shouldn't the rally in bonds signal a weak economy? It could or it could simply reflect mutued inflation, an inapropiate flight to safety or too much money sloshing around in the system looking for yield. Whatever the case may be, what lower bond yields does is stimulate the economy via lower mortgage rates and also makes stocks more attractive on a valuation basis (the fed model). I've mentioned many times before that major corrections in the market are often preceeded by weak action in bonds and the opposite is true for major rallies in the market. We have thus far seen a major rally in bonds over the past few weeks which suggests there's plenty of fuel to launch the market quite higher from here in due time.