It's a Bird, It's a Plane... It's Stocks

"It's kryptonite, Superman. Little souvenir from the old home town. I spared no expense to make you feel right at home."

-- Lex Luthor in Superman the Movie, 1978

Asia makes it through the night cleanly, with the Nikkei about unchanged on the day to follow up that horrendous opener to the week.

Most of Asia was in the green and not in a dislocated kind of way. That's good and if we can get through this week -- and more importantly because this week is so shortened, next week -- without seeing any major spikes or drops in the markets, we might even get to a point where this market's digested some of these recent gains and is ready to resume its healthy, steady rally. Regardless, you and I both know the onus is on the shorts.

Speaking of shorts, I was asked yesterday by a smart trading buddy of mine if I knew any shorts who were short. I said I definitely do and although he was surprised by that answer, I do believe that's the case. The shorts lately just haven't wanted to give in to the rally. Even when they squeeze themselves up, they seem to be eager to reload on more strength or to press any of that rare weakness out there.

Anecdotal and subjective to be sure, but so what? When it comes to navigating the short term, anecdotes and subjectivity can help gauge emotions and aggressiveness. Point is, it'd sure be easier to be bearish if the shorts and permabears were trying to get long for a trade, as they did for most of the early summer meltdown.

And speaking of aggressiveness, I do believe the longs are starting to get more aggressive. They've been Superman-like bullet proof for so long that they're starting to eye the trading programs on their cell phones the same way Clark used to eye phone booths -- like they could turn invincible. That does bode poorly for the near term.

And if you'll allow me to torture this analogy... the fact is that while Superman, like patient, smart investors, almost always wins, it doesn't always come without heartbreak.

I'm a bit lighter in exposure today than I was yesterday and that's OK by me, as I do believe the bears have some kryptonite stashed in this still-a-bit-slowed economy.

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Cody Willard is the manager of a hedge fund and a contributor to the Financial Times and VON Magazine. He is also a regular guest on CNBC's Kudlow & Company and an adjunct professor at Seton Hall.

He earned a bachelor's degree in economics at the University of New Mexico. Willard appreciates your feedback -- click here to send him an email.