We are in an inexorably stupid tape, whereby all morning rips are to be faded and perhaps sold short. It’s simply a byproduct of a broken tape. In case you’re not exclusively invested in the S&P500, this market has been broken since Feb 2021, mostly due to froth. We are in the process, as the market always does, of getting thru it — washing out the plebs and sending them back to MacDonald’s.
I sold my YOLO and Quant in the morning, locking in 40bps gains and have closed out all trading positions and have begun adding back in. I am more or less flat there, giving back more than 50bps from the open.
If you’re trying to figure out the tape and find yourselves confused, do not fear — for you are about to fail miserably and get washed out and sent back to Macdonald’s. This is an EXPERT level market and only the best traders will thrive. There are innumerable murder holes and only the best will be able to avoid them.
Meanwhile, oil is the standout and of course inflation themed trades. I have a bias towards China now, but to be honest nothing is sanctimonious, as this market isn’t one to fall in love with let alone even like.
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