Stocks Bounce Off the 50 Day Average

Yesterday I commented that the S&P was on it's 50 day moving average and that we will probably see a bounce as shorts cover ahead of the weekend and some bulls step in looking to buy. I covered a third of my short position this morning right on the 50 day which turned out to be a good move because the market rallied off that average.

I still think the market will head lower over the summer so I'm going to try and hold onto this short position that I have.

I received a few emails asking me if the market can really crash from here so I'd like to clear that up right now. I am NOT looking for a crash in the market...Let me repeat that again...I am NOT looking for a crash in the market... What I am looking for is for stocks to move sideways to lower going into August and that is why I am short.