Stock Market Recap: 11/27/07

Market futures opened up strong on the back of Citigroup news, followed by a decline in the futures by two thirds. Then we had a progressively bullish start. Stock prices retreated as the confidence number hit the wires, but they shook off the headline disappointment knowing that (a) the decline wasn't really that surprising given the negative headlines of late economic data,(b) Thanksgiving sales reports exposed the weak link between confidence and actual spending activity and oil dropped 3.5%.
Later in the day the market was weakened by bearish comments by the Philadelphia Fed (Plosser). Market gave up nearly half of its gains on the back of that commentary. However, all said and done, there is finally a technical light at the end of the tunnel. The bullish sign I see here is that the rally gained strength at the close and did not fade. When the DOW crashed through support yesterday and quickly regained the 12900 (INDU) mark. I am now calling an end to the correction phase, we won't go straight up though. If you start plotting your trend line from yesterdays lows I believe we will be much higher in the next two to three weeks. But thats not what I do, I am not a prognosticator so I have to position my self for the probability scenario. I still am 20% short and 50%long at this time. On days there is selling I will lighten up on short and add to my long positions.