All of the high beta tech stocks and biotech are reverting to their mean today. This isn’t a reason to panic, although I would suggest that seeing the Dow off for an 8th day in a row and steaming for the 200 day moving average isn’t awe inspiring.
Also, we should consider that small cap stocks have been wantonly outperforming large the past few months — typically a sign of excess degeneracy. The last thing I want to do here is overthink and begin to read the news and get negative.
Le Fly needs to mediate and find his inner-zen. Gone are the days when angry Fly would punch holes thru sheetrock or slap people in the face with hot slices of pizza. Now I’m a reformed man, a person who just executed 34 of 35 winning trades in a row.
All that said, I’m hedging here — taking 10% of my cash and buying DRIP and SOXS. This isn’t a bear bet, inasmuch as it is a preventive hedge against a forlorn supplication into a dark and craven world of pain.
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Can we buy CBLK yet? It’s looking dreamy
QD is trying to bust a move.
Regards
Chuck Bennett
We have seen this large of a divergence only twice since 1970
Difference between the Dow and Nas.
Either Nas goes down or the Dow is going back up
Regards
Chuck Bennett
Here’s your answer: http://pbs.twimg.com/media/DgOClOgWsAIdsmM.jpg
Le Fly,
Curious, what is your average trade size on these trades? I feel historically that for my trades, the $5k-$10kers win most of the time, but he $50k-$100kers punch me in the dick without fail.
I think this is an instance of relativity for a guy like Fly or anyone’s account size. Also if you go overweight on a position, it takes less of a drawdown % wise to feel like your balls got boxed. I find that most people taking a smaller position enter the trade at a given price and go from there, but when taking a larger position leg into it because they don’t have the conviction to go all in at once and usually means legging into a losing trade.