Major Disappointment For the Bulls Today

The last two hours on Tuesday (May 23) were a major disappointment as big gains were reversed and all the averages ended down. In the last hour I put a stop on half my Intermagnetics General (IMGC) position and sold 50 shares. It was a nice gain for a day trade but my intention is not to fall into a lot of day-trading; it's too stressful and I don't think I'd do it well consistently.

I've been so caught up in anticipating a rally that I have to remind myself I'm in a bearish mode medium-term, I have a lot of cash, and I have a couple of short positions, so having things go badly for the bulls is not entirely bad for me. Figuring that true bulls are likely feeling more deflated than I am, I doubled my short position in the Russell 2000 ETF (IWM) to 200 shares in the last hour, which so far looks like a great move. I would have felt a lot more comfortable selling short after a decent rally instead of into this oversold situation, but I have kept some powder dry for more short selling if the opportunity presents itself.