Today is a perfect example why I chose to trade SPY this year, in favor of the whack a mole game of individual stocks. Stock picking has become exceedingly difficult, as money sloshes from one asset to the next. In my opinion, it’s better to be macro, at least for the time being.
Stocks surged ahead again, adding to recent glorious gains. Total winship of the S&P 500 stands at around 7% over the past two weeks.
But the breadth was weak, quite so. Stock pickers were inexorably punched in the face today, with upside participation less than 65% of stocks traded. This doesn’t mean the wheels fall off tomorrow. It simply means there is overhead supply in this market by people who were buried in positions. Now that the market has decided to trade up, they are getting the hell out.
As discussed earlier this week, my final sale of SPY will take place tomorrow, placing me in a 75% cash position. After tomorrow, out of respect for paying members of Exodus, trades will only be discussed, in real time, inside Exodus.
Happy trading.
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i bought BAC today. just to spite the crash callers.
why not cash settled products for the huge tax benefits and better leverage?
My new show Breaking Breadth
Disappointed that none of you said “The Breadth is weak? No, you’re weak.”
make note I was the only one using “breadth” in my followup discussion