Smoke Break: Locked in Hard-Fought Gains

As much as I love a good fight I am not in the mood to disrespect the market's upside reaction to the negative AAPL news overnight and then, of course, the Bank of England QE news this morning. 

Given the market finally responded more forcefully to oversold conditions than recent sessions, and especially in the face of bad news, I am taking what amounts to a trading "smoke break" and locked in a bunch of hard-fought gains on the short side with Members. Positions I have held for weeks, even months now, like a TBT Long (ultra-Short TLT), or Visa short, among others, were closed out today. 

To be sure, I am looking to reenter these positions within a reasonable period of time. Whether that means tomorrow, next week, or after the midterms (for example) is highly dependent on what bulls can do with this rally. 

Is it a mere one-off squeeze, or something more? 

Overall, my hunch is that we may have settle into a range after this initial squeeze and then the looming earnings season should surprise to the downside in the coming weeks. 

For now, a smoke break it is, with a double espresso chaser needed after a major central bank decided to meddle with what could have been a massive down day in markets across the board.