Out of Juice

The solars have been leading the market higher, now they’re leading us to a viking burial.

I’m now down over 3% for the day, even my haptic play, IMMR, which was soaring earlier, has reversed and turned to red. I am enjoying outsized losses because my appetite for risk was outsized. In the event the market continues lower, I will endure more losses, up to 10% from the highs. Being that I was up 1% this morning, today’s reversal is -4% for me. I will see this market out, giving it the benefit of the doubt. However, I am not prepared to bet my life on it and will cut losses at the -10% mark.

Everyone is so dramatic when it comes to Fed statements. We’ve been here before. Why does everyone forget the answers?

Even if the Fed ended QE, do you really think they’d allow the market to tank for an extended period of time? Eventually, we all have to behave like adults, without the assistance of the Fed. However, the very fact that there is a bid under this market, via an activist Fed, should be enough to quell any Fed withdrawal symptoms that might emerge in the future.

All in all, today was a horrible day. I hate reversals. They always spill over into the net day. But this is the price of admission for the gamblers parlour. Losses should never come as a surprise.