iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,220 Blog Posts

Bullshit Holiday Reversals

This is the sort of tape that makes one want to jump into a lit fireplace. No traction. Reversals to the downside, led lower by small cap. However, you’re being overly dramatic. See, small caps have crushed to the upside the past week, far outpacing the large caps. This is simply, dare I say, a reversion to the mean.

One could make a strong argument that I am being blind to a possible reversal in the indices and I admit that I am jaded beyond belief and barely know the difference between what is fake or real anymore. However, I do know this — leverage loans are doing ok, as well as junk bonds, and WTI.

I would’ve liked to lock in those gains in $TUFN this morning, but I didn’t and that’s life.

Oil isn’t down and small caps are merely in profit taking mode. Into a holiday, expect thin and disgraceful trading. If you’re placing hedges now, I do believe you’re making a mistake.

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2 comments

  1. numbersgame

    Going net short may be a mistake, but hedges are seldom a bad idea. Cash is a hedge.

    AAPL is up, moving above $200 resistance. At this point. odds are that we eventually test major market *closing* ATHs on an *intraday* basis. This means an intraday high above 2931 on the S&P 500. I don’t think we’ll clsoe above that, or test intraday ATHs (2941).

    If we don’t reach 2931 intraday within the next month or so, then at the least we will test the March lows and go from there

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  2. ferd

    On a 30 minute time frame, /es has confirmed a break of the December 26th to now up trend line. Yes, I know …just the 30 minute time frame. But for now, the S+P guilty until proven innocent. Long some SDS here.

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