Have we really bottomed?…

Have we really bottomed?…

It’s a brand new week.  And the markets are up again.  Last week, when we were under DJIA 11,000, I wrote:

I do think we’re getting closer to bottoming sooner rather than later.  I’ll rephrase — I think this market might finally be putting in a bottom around the 10,800 level or so.   And I’m going to be a steady buyer any time we dip from 11,000 as I have been doing thus far. (I think this market might finally be putting…) —

We are now up nearly 7% from that 10,800 level, and while I wouldn’t dare say we have for sure bottomed and moved on from below the DJIA 11,000, the further and longer we steadily move away from that level, the harder it gets to test it again.

Meanwhile, Riverbed’s now up nearly 20% from where it was last week when I bought the calls in the name:

Chart forRiverbed Technology, Inc. (RVBD)

As I’d written at the time (see:I’ve now finally stepped up and done my first purchase of some…):

Riverbed’s been dripping steadily lower as I’ve been patiently waiting to add to it once again since we had sold most of our calls when it was indeed over $40.  (see: Let’s talk about some important trading strategies that I’m employing right now, for example).

I’ve now finally stepped up and done my first purchase of some Riverbed since then.  I’m buying calls dated out to December and January around the $25 strike price. —

Cody back again in real-time here.  I’m not selling any of the calls just yet.  I’m aggressively long as I’ve been a buyer below DJIA 11,000, and sometimes aggressively in the last couple weeks.  And that’s got our positioning set up nicely to increase our longside leverage if we continue to rally and to limit our downside exposure if we fall back to those recent levels.

I also asked everybody last week to weigh in on whether the bulls or the bears were more scared.  The answer, coming from more than 100 respondents, was almost unanimous: the bears.  Before I go, and now that we’ve rallied nearly 7% from the lows…I’ll ask again. Has it changed yet?  Who’s more scared, the bulls or the bears?

No traders for me yet today.  Easy does it now that we’re being rewarded for having bought aggressively into the teeth decline back when it was so hard to do so.