Changing Tone

The tone is changing in the market so I no longer would want to be short. My stop was hit on DXD (down 7%). It served its purpose as insurance to protect against any major downside but with the rally over the past few days the tone feels so much more positive. I would also be nervous shorting the DOW with so many financials in it. A lot of people took gains out of the commodities and are now holding cash on the sidelines. I wouldn't be surprised if that excess cash started finding its way into the beaten up financials. BSC's bid being raised, the Fed's various programs to help with liquidity and the lowered Fed Funds rate all seem to be providing catalysts to this market. There are still liquidity issues (See CIT) but the many think that the market is extremely oversold so any news that isn't as bad as expected is a big positive for the market.