Market overview for March 31

The market gapped up this morning on no particular news. Financials were strong again and led the gains in the market along with big cap techs. My feeling today was that there would be some profit taking as it is the end of quarter and it felt like institutions might lock in some recent profits in an otherwise horrible quarter. So, I had a bias towards shorting the market but was waiting for confirmation all day.

My first trade of the day was indeed a Long in SDS at around 10:45 after the first reversal from the very important psych 800 level on the SPX. The trade was good for .50c where I sold half. The other half was stopped out at entry.

The market was choppy and meandered most of the morning and early afternoon in a very tight range around that 800 level in SPX. However, after getting a signal to go long just before the 800 level was to be tested for the 5th time, I decided NOT to take the signal thinking it would reverse again. Bad mistake, as the market surged past this level and SDS would have been good for at least a 2.00 gain.

As usual, the final hour provide some fireworks again. The market lost most of its gains in the final 30 minutes of trading on heavy volume. I was able to go long SRS which was good for 1.20. I was also long ERY before the selloff started, but was not patient with the trade and sold it for B/E. I also took a short in POT as it did not participate much in the rally and had come in just prior to the selloff. that was sold for a 50c gain.

Tomorrow, I am expecting the selloff to continue, but as usual, I will wait for the setups and confirmation in the charts before committing.

Update on APOL: earnings are out this evening and although they beat estimates, the market reaction is not good and the stock is down post-market. This might setup as a short on a move below 75.

Good luck!