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If you agree with my view that we will see a relief rally from now until at least Labor Day (it is September 6th this year), then the price action and prevailing sentiment today is fine. As opposed to early last week, when an exuberant but brief bounce led to the next leg down, the action these past two days has been much more consistent with a bottom. We are seeing tons of frustration by traders who had hoped for an immediate move higher. Similarly, bears who had hoped to short the next leg down are failing to see it materialize.
With all of that said, stocks are slightly drifting into the red. The old Wall Street axiom, “Never short a boring market,” rings true because they usually resolve higher. For the past two days, we have seen an increasingly boring market. The more traders I see become exasperated with this price action, the more confident I am in my thesis for a rally.
I also made two trades today:
- I bought 1/4 more of $APKT. I now have a 3/4 position in the name.
- I took 1/2 off of $ARUN in front of their earnings tonight.
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TOTAL PORTFOLIO:
EQUITIES: 64%
- LONG: 64% ($SYNA $AAP $ARUN $APKT $KOG $LVS $MELI $HMIN $RDWR $CMI)
CASH: 36%
Thanks for your update…Here’s to you being right! Cheers
Chess, surprised to see you holding CMI even though it broke down and looks to be holding under the 50 day MA, what is your thinking on that one? Or do you just expect it to follow along if we get our bounce.
Great post as always…
Yeah…My faith in The PPT (registered OVERSOLD same day I would normally sell) overpowered my stop on that one. It’s just additional risk I was taking on, so no point in polluting my readers with it 😉
I stopped out of it so I expect it to rip for you now, but I am long a bunch of other stuff, in concordance with the grand design… PPT 4tw