It looks like we’re getting a nice bounce today, in spite of horrible earnings at AMD. Nasdaq futures are +100, Dow +178. WTI is slightly higher and the general mood this morning is one of tentative confidence in the idea that maybe, just maybe, yesterday’s bloodbath was enough to call it a bottom.
Naturally, I find myself Gartman’d in a variety of triple inverse ETFs; but I’ll be just fine. I’m mostly cash and my bigger dilemma is whether or not to chase the rally, fade the rally, or simply sit here and do nothing at all. When markets cascade lower, it tends to make everyone bearish, even the last bull. In this case, the last bull might’ve been me. Often times the last bull goes short, markets reverses higher, and then said bull is stuck with a bunch of shorts and soon becomes emotionally invested in retardation.
Be sure to avoid getting emotionally attached to a trade.
I’ll treat the inverses like any other trade, adhering to stop losses.
Is it possible the market will whipsaw higher, suck in a bunch of faggots, and then whipsaw lower again?
Yes, which is what makes bad tapes so dangerous.
If you’re conflicted, like me, it’s probably best to ride it out with a lot of cash and buy back when the higher probability trades present themselves, after the squall ends. Trying to catch the pivot point is hard and if you messed up a few times, that might lead to psychological fuckery that will certainly lead to big ass fucking losses in your 4 figure portfolios.
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