blackmarkt-trader: Market Recap 070711

Below is the reason for the current rip your bear face off rally and why we still have fuel to go higher as it appears that there are still a ton of stubborn shorts who have yet to cover believing that at any moment this rally will reverse or any day now we'll see selling or dip to let them breathe a little. But as we all know the market sets up to frustrate the largest number of people.

Zerohedge Short Interest Chart

http://www.zerohedge.com/article/brutal-short-covering-massacre-sends-market-soaring-just-time-nyse-shorts-hit-2011-highs

Bullish case:

- QQQ is back at 2011 highs with SPY & IWM not far behind
- Copper a growth indicator for China is ripping
- Dollar still dogging
- Long bond bear flagging
- Crude almost back at 100

Bearish case (you can tell I'm grasping):

- IWM is now lagging.
- McClellan Oscillator is still in way overbought territory
- VIX held 15.50
- JNK v. LQD may be making a lower high
- That's all I really have...

SPY