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
21,316 Blog Posts

Buy the Dip or Short into the Hole?

I believe a little of both will do. The semis are right on the edge of COLLAPSE and should bounce here, else they’re fucked. One has to imagine these supply chain issues getting in the way of business at some point. When do we begin to price this shit in?

I have been insulated from the carnage, mostly in cash — sitting in the tall grass waiting for a zebra to devour. I am inclined to sell short into the hole — only because I like to do it. However, even if we close miserably, we are likely to bounce tomorrow, maybe at the open and then collapse.

Important to note: remember to sell opening rips and trade with tight stops throughout the day. The reason why I am down 7% for September is because I let some positions marinate for a few hours — very few but larger trades constituted the bulk of my losses.

Right now I am 21 for my last 22 trades, so perhaps the spell has ended and I am back to trading great again.

Whether I will short into the hole or buy more wholly depends on how I close the day. If with a big cushion — maybe I go for it long. If marginally higher by less than 2%, I will likely hedge my longs with a short against tech. Worst case scenario would be tech bounces tomorrow and oils trade off. It can happen, so I have to think about that too.

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4 comments

  1. zombie

    FIG!

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  2. granpa

    Just like the old days. Nice indued.

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  3. edge

    The VIX has a decent chance of topping 30 IMO.

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  4. my2cintz

    Keep your streak going: RGS for the squeeze

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