Sometimes You Have to Fight on Halloween

I made a last-minute decision yesterday inside Market Chess Subscription Services to unload the rest of my VXX (volatility) long and dip a toe back in the equity waters, as bears seemed to have fumbled a bit one too many times for my taste in terms of truly washing out this market. 

More than anything else, corrective or bearish trends tend to exact a fair amount of frustration on virtually all market players (and observers) alike in due time, which means even shorts and volatility longs take a beating sometimes. And if I could help it, I was not about to turn my VXX win into a loss after previously scaling partial gains into a prior pop in the VIX.

I may very well return to a VIX long of some sort in the coming days and weeks. But for now I am respecting the idea that corrective or bearish trends often feature some of the most explosive and violet reflex rallies, the likes of which often catches even the most agile of bears off-guard. 

Given the Facebook upside reversal last night, not to mention seeing a long-term holding of mine, FEYE, being permitted to surge after earnings, I am not opposed to a few more days of bouncing here on the major averages for them to, say, probe their now-declining 200-day simple moving averages from below. Indeed, if we get there those will be some big technical tests for bulls to prove themselves. 

Until then, as a Member astutely noted, we can look at previously hot names like Intelsat (communications satellite services provider), on the daily chart, below. Earnings are now out of the way. And if the market bounce has more juice to it I will look at I on the long side over its 50-day moving average (dark blue line, arrows) just above.