I covered a leveraged short in Small Caps, though I maintain a straight out short on SPY, which I have been holding for maybe a couple months now.  I even bought a few things that I trust relative to the speculative stuff that is getting beaten to a pulp.

These Hammer candles, unlike the things that showed up on Monday, are valid as bullish reversals, coming after a downtrend as they have.  This is all short-term stuff.  The market is still losing momentum and undecided on its next big directional move.

Dow Hammer…

SPX Hammer…

RUT Hammer (sort of)…

And then there is NDX at support…

And SOX was green today, though still locked in a bearish trend.  SOX is the one I have not been able to reconcile because I really have not found a good reason for its sharp correction, at least relative to the other stuff.  We are going to talk about the Semi’s this weekend.  Two of the four stocks I took a shot with today are Semi Equipment companies.

>>Read Part II:Hammer Time