If I could do day trading now.......

It is really ugly and dire in the stock market right now. General investors and traders are very bearish and terribly overwhelmed by all kind of bad economic data and prospects. Is any of such data really new? Nothing actually! Investors and traders were just in the illusionary mode in the past 2 years with a dream that the US and Europe had miraculously survived the worse financial crisis and had got a successful jump-start with Fed's phony money stimulus. All the things the Fed and the US government are doing right now is simply to add more debt, which will obviously not solve the debt problem with more debt. Just in opposite, it has made the situation much worse every day. It is almost like that everyone now suddenly wakes up to realize this reality and rushes to the exit door.

When everyone is bearish and depressed, I start to be more bullish, at least in the short term. Purely from the technical charting perspective, the market has actually done nothing but just moving in a side way. In the past 6 months or so, S&P 500 has been boxed into a tight trading range between 1250 to 1350. Today S&P is at 1254, still sort of in the "normal range". So it is very close to its support line at 1250, merely 4 points away. There is a high chance that the market may bounce back from this support level. Having said that, if S&P indeed breaks through this support to <1250, then it would be really ugly. A much more severe correction will very likely follow. If I were a day trader and could be swiftly in and out, here is my game plan: I'd trade via SSO options to bet the market will rally from here. But I will closely watch the level of 1250 for S&P. If it drops through this level, I will exit immediately for a small loss. Of course I cannot do this with my day work and it is a pure speculation. It would be fun to see what happens in the next few days.

Just so you know, I'm actually a bit "bearish" now for gold and silver. Especially for gold, it is really on fire right now to have reached its all time high at $1661, a $40 jump today. A pull back is very likely in the card. However, any meaningful pull back would be a good buying opportunity. As I said, I have a strong hunch that gold and silver have resumed its next uptrend leg.