Okay, I will admit this bear trap was superbly laid down, even I lost hope and took on a VXX position. I should have known that whenever VXX looks attractive to me, the hammer of certain death and pain/suffering was about to be laid down on the shorts.
This morning there are hardly any news updates on Twitter, regarding Spanish and Italian yields because they are sharply lower. For the most part, people crowd the twittersphere to disseminate bad news only. Well here is the good news, Spanish yields are at 6.97% and Italian at 6.06%. At the same time, TLT is moving lower, but not enough. As a matter of fact, if TLT doesn’t drop soon, this rally will weaken.
Bottom line: I am not participating in this rally because I got scared. I got scared because I was more interested in protecting my gains, than making more. If I would have followed my old gameplan of buying every dip because the central banks will not let us fail, I would be long TEX and MTW in size today. Instead, I am juggling my testicles now, watching all of the ugly people drink my champagne and eat my caviar. The great part about the market, which is why I love it, is it gives participants ample opportunity to get on the right side of the trade.
I’ll be doing some scouting this morning and decide soon whether I want to get back into stocks, like a fucking man.
Movie Rec: Jiro Dreams of Sushi.
His passion for sushi can be translated into any career path, especially stocks.