I should mention I actually was right two days in a row. I mentioned at the end of my post two days ago that I was going to cover my short position. My reasoning at that point, and which proved to be right, was that the market would have a sharp correction the other way as traders covered their shorts. The market rallied slightly in the morning, and then pulled back toward the middle of the day. I decided to sell my short position at that point and get out while the getting was good.
My timing in this regard could not have been better. The market had a strong rally starting almost literally as I sold my short position. The exact timing of the rally was certainly more luck than skill on my part so I cannot take too much credit.
The market this morning is tanking once again, stirred on by worse than expected job and housing numbers. Well duh. More on that later tonight.