LAME

Looks like the gap fade trade may be in play for today and it may be worth a shot. My guess is this one gets faded.
A few days ago, Dick Arms on realmoney.com suggested that traders sell longs and maybe even put out some shorts in light of the recent market action. Today, Dick has some more market thoughts:

"The rally in the last two days, keyed primarily by anticipation of the Federal Reserve's latest rate decision and subsequent action, has recaptured and surpassed the losses sustained earlier in the week. I said two days ago that I was disappointed in the feebleness of the rally I had been looking for since the oversold indications two weeks earlier. This strength does help a little, but we still have seen a very poor performance since the extreme oversold levels of our indicators.

I suggested on Wednesday, based on my Arms Index moving averages, that some profit-taking and even some shorting might be in order. So far I am wrong, but it looks more and more as though I am actually early. Unfortunately, the rally does little to change the outlook I expressed two days ago."

Far be it for me to criticize Dick, but saying I was early is like the guys who have been calling for a rotation out of small caps into large caps for the last several years. I was early is the greatest excuse in the trading world. It is like Dick is following the give them a time or a price but never give both. Not sure why not use the "I was wrong" excuse. After all, he has trading indicators named after him, not like he will be forever remembered for this call.