I was on a call when markets doubled early gains and I got caught, fooled even, with shorts in tow. As a result of this, I am down 69bps. Knowing what to do, I covered my shorts and added to more longs in an effort to invest alongside the prevailing intra-day trend. I am, however, short oil stocks — because of weakness apparent.
I wanted markets lower — but it seems there is a chasm between what I want to happen and what is actually happening. My intent here is to halve my losses, hopefully harvest gains, and then reload some shorts into the close for the big Monday belly-flop onto the hard pavement covered with rocks and glass.
I’d place the odds of a downside reversal for today at exactly zero. Although breadth is a middling 56% — there is very good action in tech and mega cap stocks. I will need to dig into the market some more to get a more educated or sophisticated view on things.
But for now, this looks constructive.
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