Positioning for OS Bounce

I traded myself back to green. No miracle, just precise and careful trading — taking small gains and making sure losses were limited to under 2%. The market has been showing signs of improvement and I have since positioned for a long directional move higher, even in small caps.

In a market down 177 NASDAQS your inclination will be to sell, in order to preserve whatever wealth you have left remaining in your bullshit brokerage accounts. Often times you’d be correct — selling into a bad market is usually a good thing. But, and however, there are times when mean reversion kicks in and the elasticity of the market all but assures a reversal in the current trend.

Here is the penny index in Stocklabs — down for a 5th consecutive day.

Barring another surrender by the Unites Steaks in one of many battlefields we have open around the world, we are more likely to bounce from here than to trade even lower.