Let’s examine the move in energy names the past two days to start 2022, up 18.5% on GUSH. That’s wonderful but if you went in heavily long oil to start the new year — you were in fact a contrarian since it lost 20% the previous two months. On that same train of thought, the market appears to be churning through narratives in attempt to produce alpha.
The hardest hit areas of the market are in tech and healthcare, specifically software and biotech.
Perhaps an enterprising man would go balls deep into this narrative, hoping to see a mean reversion bounce like what just occurred in GUSH. Such a man is me, now long WCLD and LABU, but I do so skeptically. Naturally, it’s also normal to feel like you’re doing something wrong buying the blood. There is a vampirish quality to it and I have never remembered feeling good about it.
For the day, I closed at session highs +78bps, long but also hedged with a 10% weighting in TZA.
Never relax. Never trust the process. Fuck them.If you enjoy the content at iBankCoin, please follow us on Twitter