Tired Bull

There is a real divergence today, with banks in the shitter and tech ripping. However, trannies are weak, so don’t get all excited and shit about a late day rally. I can say with an enormous degree of certainty, the market will not reverse higher today.

See tech is stupid, trading on the whims of frivolous and gratuitous takeover rumors. The real tell is the banks. Look no further than JPM, BAC, MS and GS.

Instead of selling out of my VXX, I added to my position today. It was a small add, in an effort to reduce my cost basis. Make no mistake, we are due for a 3% pullback.

All of my other positions are performing admirably, putting me flat for the day. Yesterday’s purchases of OPEN and RFMD proved accurate–so far–trading up for the session. More importantly, my WNR is barely down. Trust me when I tell you, “the WNR” cannot be kept down for much longer. It is worth at least $25, if not more.

To be clear: if I thought a steep drop was imminent, I’d sell my longs. I am net long because the market is speaking to me. My next play will be to remove most of my longs in an effort to allow my 15% short exposure benefit from the coming drop in stocks. I will not up my short exposure to more than 25%. My future allocation will likely be 10% long, 25% short and 65% cash.