We’re moving in lockstep with HYG. When it goes higher, stocks go lower and vice versa. I’m gonna show you a chart with a bunch of shit on it. The important thing to note is high yield has broken out of uptrends before, but not like this. We’re now threatening some important levels that could persuade some long termFAGS to break.
Markets just dove off a cliff. I picked up some SJB, short high yield. Let me preface the bearishness of this title and post with the fact that stocks do not go down in a straight line, nor up. We’re in a very unique trading pattern, the sort of thing that isn’t picked up by AI or mean reversion algos. In Exodus, I’ve been ignoring the oversold signals, with exception to our 3mo algo, which HAS NOT flagged OS since 11/20. It’s important to note, that algo nailed the market bottom several times inside of this range.
I have no idea where we close. All I do know is I have 100% of my Quant invested long, some in value, some in growth. I am trying my hardest to mitigate those losses in my trading account, which has also been hamstrung by false moves and me trying to trade every tick. I am not immune to the pangs and the bangs; but I have not blow up. I’m up, rather considerably, in my trading account this year and need to figure out how to protect my larger, longer term, investments in 2019.
Best case, we capitulate here, bottom on a Friday, and change the narrative.
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